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Can I Write My Lottery Losing Tickets Off If I Have Saved Them During The Year?

Topic closed. 19 replies. Last post 3 years ago by Stack47.

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Posted: January 25, 2012, 11:11 am - IP Logged

I live in Florida. If this can be done, would someone please tell me which form I need to use and how to go about using it?  Thanks.

    sully16's avatar - sharan
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    Posted: January 25, 2012, 11:55 am - IP Logged

    In most states, you cannot write them off unless you have a big win, and if you can itemize.

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      Posted: January 25, 2012, 11:55 am - IP Logged

      I live in Florida. If this can be done, would someone please tell me which form I need to use and how to go about using it?  Thanks.

      It depends...you are allowed to deduct lottery losses against the WINNINGS if you itemize your report winnings on line 21 of form 1040 and schedule A, as other miscellaneous deductions. (not subject to 2% AGI limitations).

      You need to have a running log of ALL of your gambling activity for the year, and report ALL your wins. The IRS isn't going to believe that you didn't have even one other win for $2. You must report all wins, even small ones.

      And losing lottery tickets aren't considered proof of losses. The IRS is aware as anyone else that you can collect them from friends or on the floor from wastebaskets at any lottery outlet.

      Having said that, congratulations on your wins....if any?????  Party


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        Posted: January 25, 2012, 2:46 pm - IP Logged

        It depends...you are allowed to deduct lottery losses against the WINNINGS if you itemize your report winnings on line 21 of form 1040 and schedule A, as other miscellaneous deductions. (not subject to 2% AGI limitations).

        You need to have a running log of ALL of your gambling activity for the year, and report ALL your wins. The IRS isn't going to believe that you didn't have even one other win for $2. You must report all wins, even small ones.

        And losing lottery tickets aren't considered proof of losses. The IRS is aware as anyone else that you can collect them from friends or on the floor from wastebaskets at any lottery outlet.

        Having said that, congratulations on your wins....if any?????  Party

        I forgot to mention you can deduct your losses, but not EXCEED your winnings on schedule "A" as miscellaneous deductions.

        Hopefully this was helpful, but as always consult your personal tax advisor for the final say.  Type

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          Posted: January 25, 2012, 7:14 pm - IP Logged

          Thank you very much. This was very helpful.  I played my first play 4 game on Jan. 2 and won 200 bucks when I played 0012.  Then again last week, I played 9211 boxed and won another $200.  I have since stopped played scratch offs.  I like playing cash 4 a lot better...not to mention the odds.  I hope that Feb will be as prosperous.  I am extremely cautious and refuse to play a lot of money.  I try to keep it low as possible but I have missed out on $5000 twice this month...almost cried...but I was strong.  There will be other opportunities.

            grwurston's avatar - Lottery-012.jpg
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            bel air maryland
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            Posted: January 25, 2012, 7:18 pm - IP Logged

               I would like to add that you can go to the IRS website and look up gambling loses for more details.

            "You can observe a lot just by watching."  Yogi Berra, Hall of Fame baseball player.

            The numbers will tell you what numbers to play. Pay attention to the numbers.

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              Kentucky
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              Posted: January 25, 2012, 7:54 pm - IP Logged

              It depends...you are allowed to deduct lottery losses against the WINNINGS if you itemize your report winnings on line 21 of form 1040 and schedule A, as other miscellaneous deductions. (not subject to 2% AGI limitations).

              You need to have a running log of ALL of your gambling activity for the year, and report ALL your wins. The IRS isn't going to believe that you didn't have even one other win for $2. You must report all wins, even small ones.

              And losing lottery tickets aren't considered proof of losses. The IRS is aware as anyone else that you can collect them from friends or on the floor from wastebaskets at any lottery outlet.

              Having said that, congratulations on your wins....if any?????  Party

              "You need to have a running log of ALL of your gambling activity for the year, and report ALL your wins."

              If joyceepoo is a professional gambler, they should already know that. But for the average player that gets a W2-G for winning over $600, they can deduct up to that amount by going long form using schedule A.

              If the IRS enforce their rules "Gambling winnings are always taxable income" every player cashing a Free Ticket or more would be required to file IRS Form 1040 regardless of income and have to report the winnings on line 21.

              "The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form."

              Does this mean if win a Free ticket I must report it as earnings and then deduct the cost of the ticket (and losing my standard deductions) using schedule A?

              "To deduct your losses, you must be able to porvide receipts, tickets, statements, or other records that show the amount of both you winnings and losses."

              But my Free ticket is the proof of my losses and I must cash it to get my winnings. Now what?

              I can use a scanner to cash scratch-off and/or online game winning tickets and get credits to buy other tickets without signing the back of the ticket. And I can even hand an unsigned ticket to a clerk valued under $601 and get paid the winning. Never been asked for my name by an automated machine cashing a slot machine ticket or a race track casher.

              Now if all casual gamblers, including at casinos, race tracks, bingo halls, and of course the lottery had to report even the smallest win amount, why doesn't the IRS require casino and race track cashiers, bingo hall operators and lottery sales clerks to get names (including two forms of ID) and SS number of every winner of anything (regardless of what the player spent)?

              Why does the IRS allow casinos and lottery sale agents to have automated machines to cash small amount tickets ($600 for the lottery and $1199 for slot machines) if in fact they require us to report any and all winnings?

                Littleoldlady's avatar - basket
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                Posted: January 25, 2012, 8:06 pm - IP Logged

                Thank you very much. This was very helpful.  I played my first play 4 game on Jan. 2 and won 200 bucks when I played 0012.  Then again last week, I played 9211 boxed and won another $200.  I have since stopped played scratch offs.  I like playing cash 4 a lot better...not to mention the odds.  I hope that Feb will be as prosperous.  I am extremely cautious and refuse to play a lot of money.  I try to keep it low as possible but I have missed out on $5000 twice this month...almost cried...but I was strong.  There will be other opportunities.

                If they generated you a tax form..might be 1099 or something like that then you have to file.  They don't do it unless you win over a certain amount all at one time.  Say for instance you hit the P4 for 5,000.00 then you would have to file.  the papers that you fill out to get the money are used to generate your taxes owed document.  So if you didn't fill out any papers..I wouldn't worry about it.

                If you know your number is going to hit, have patience and then KILL IT!

                You never know when you will get another hit.

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                  Posted: January 25, 2012, 8:13 pm - IP Logged

                  If they generated you a tax form..might be 1099 or something like that then you have to file.  They don't do it unless you win over a certain amount all at one time.  Say for instance you hit the P4 for 5,000.00 then you would have to file.  the papers that you fill out to get the money are used to generate your taxes owed document.  So if you didn't fill out any papers..I wouldn't worry about it.

                  "So if you didn't fill out any papers..I wouldn't worry about it."

                  I Agree!

                  But for those wanting to pay even more in taxes, http://www.irs.gov/newsroom/article/0,,id=108277,00.html

                    James1's avatar - 5599078405 12a562a9e7_t.jpg
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                    Posted: January 25, 2012, 8:27 pm - IP Logged

                    You can take your losing tickets and sell them for cash on craigslist

                    2014 Highest Winner: $500

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                      Posted: January 25, 2012, 8:47 pm - IP Logged

                      Are you kidding me?  Now who in the world would want to buy losing tickets?  That's silly.


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                        Posted: January 25, 2012, 10:50 pm - IP Logged

                        "You need to have a running log of ALL of your gambling activity for the year, and report ALL your wins."

                        If joyceepoo is a professional gambler, they should already know that. But for the average player that gets a W2-G for winning over $600, they can deduct up to that amount by going long form using schedule A.

                        If the IRS enforce their rules "Gambling winnings are always taxable income" every player cashing a Free Ticket or more would be required to file IRS Form 1040 regardless of income and have to report the winnings on line 21.

                        "The full amount of your gambling winnings for the year must be reported on line 21 of IRS Form 1040. You may not use Form 1040A or 1040EZ. This rule applies regardless of the amount and regardless of whether you receive a Form W-2G or any other reporting form."

                        Does this mean if win a Free ticket I must report it as earnings and then deduct the cost of the ticket (and losing my standard deductions) using schedule A?

                        "To deduct your losses, you must be able to porvide receipts, tickets, statements, or other records that show the amount of both you winnings and losses."

                        But my Free ticket is the proof of my losses and I must cash it to get my winnings. Now what?

                        I can use a scanner to cash scratch-off and/or online game winning tickets and get credits to buy other tickets without signing the back of the ticket. And I can even hand an unsigned ticket to a clerk valued under $601 and get paid the winning. Never been asked for my name by an automated machine cashing a slot machine ticket or a race track casher.

                        Now if all casual gamblers, including at casinos, race tracks, bingo halls, and of course the lottery had to report even the smallest win amount, why doesn't the IRS require casino and race track cashiers, bingo hall operators and lottery sales clerks to get names (including two forms of ID) and SS number of every winner of anything (regardless of what the player spent)?

                        Why does the IRS allow casinos and lottery sale agents to have automated machines to cash small amount tickets ($600 for the lottery and $1199 for slot machines) if in fact they require us to report any and all winnings?

                        Of course no one is required to pay or report taxes for wins of under $600. The grey area comes into play when you want to start deducting all your losses.

                        If Martha Milkmaid spent $1500 on some scratchers but won only $500, she may claim the $1000 as a loss, but she must report the $500 as income.

                        If Lucky Luke spent $500 and won $1500 on some scratchers, he must report the $1500, but if he wants to itemize he can claim the entire $500 as a loss on schedule "A", since he is allowed to claim any losses up to his winnings of $1500.

                         

                        Ironically, this helps winners more than it helps losers. Moral: Always be a winner!!!Banana

                          rdgrnr's avatar - walt
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                          Posted: January 25, 2012, 11:51 pm - IP Logged

                          Are you kidding me?  Now who in the world would want to buy losing tickets?  That's silly.

                          I'll sell you mine for half price.

                          You never know, maybe I overlooked a winner, I'm drunk most of the time.

                          Could make for a fun-filled family weekend.


                                                                       
                                               
                                                                   

                           

                           

                           

                           

                                                                                                                             

                          "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                      --Edmund Burke

                           

                           

                            garyo1954's avatar - garyo
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                            Posted: January 26, 2012, 12:04 am - IP Logged

                            I'll sell you mine for half price.

                            You never know, maybe I overlooked a winner, I'm drunk most of the time.

                            Could make for a fun-filled family weekend.

                            With 16 dependent deductions for hound dogs those lottery tickets would be a drop in the bucket. Wink

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                              Posted: January 26, 2012, 3:31 am - IP Logged

                              With 16 dependent deductions for hound dogs those lottery tickets would be a drop in the bucket. Wink

                              I thought I read somewhere here in LP that he had at least 1 kid in each state?Eek