Are Lotto Losings Tax Deductible?

Reply #11

BevsPicks2 — Wed, 28 Mar 2007 23:06:09 GMT

Reply #10

guesser — Wed, 28 Mar 2007 23:03:09 GMT

I was trying to figure out how to DEDUCT $100,000 in WINNINGS.......... but you are correct: He'd have to prove 100K in losses.........

I wish I had that 'problem'.

Reply #9

guesser — Wed, 28 Mar 2007 23:01:01 GMT

I have about 100 boxes in the garage stuffed with tickets. I say about 300,000 give or take a few thousand.

You have played that many games in the last month ??? (I am assuming PB, I am wrong I take it ?)

Still, I thought all tickets expired a year after issue

Reply #8

pacattack05 — Wed, 28 Mar 2007 17:00:08 GMT

The tix I have are within one month. I still have 5 months to go.

Reply #7

KY Floyd — Wed, 28 Mar 2007 05:43:14 GMT

As others have said, in your example the entire $100,000 would be part of your taxable gross income, but you could deduct losses for the same year up to the full $100,000 if you could actually prove that you had wagered and lost that much. Despite their reputation as mean, nasty and completely unreasonable, if somebody wins and claims a deduction of less than $1000 an auditor probably isn't going to be too demanding about the proof you offer. OTOH, if somebody is being audited and they produc... [ More ]

Reply #6

Stack47 — Wed, 28 Mar 2007 03:55:06 GMT

The total amount of the jackpot is taxable income. In your example if you won $100,000, you could deduct $70,000 in gambling losses because you have the tickets to prove it. Sweet talk Justx into giving you another $30,000 in losing tickets and you can claim up to $100,000.

Losing tickets are only good for the taxable year so you might consider getting rid of the tickets dated 1987.

Reply #5

Stack47 — Wed, 28 Mar 2007 03:39:10 GMT

I worked with a guy that won $100,000 and told me he deducted the entire amount because his tax lady told him he could. I never heard if he was audited but had he been, he would have to prove $100,000 in gambling losses.

Reply #4

guesser — Wed, 28 Mar 2007 02:33:32 GMT

How can you do that when they must be redeemed within 6 months

Reply #3

pacattack05 — Tue, 27 Mar 2007 22:25:36 GMT

I thought you could only deduct the losing tickets from the total of taxes held from a large win.

If for example, the tax on your jackpot was 100,000.00, and you have 70,000.00 in losing tickets, they'd only deduct 30,000.00 from your jackpot prize.

I have about 100 boxes in the garage stuffed with tickets. I say about 300,000 give or take a few thousand.

I think I'll cashem in someday. It'll be my IRA account.

Reply #2

DoubleDown — Tue, 27 Mar 2007 21:29:57 GMT

Correct..

I had $3000 in 1099-G winnings and claimed the maximum allowed in losses for me, which was $3000 .

I have tickets to substantiate it.

DD

Reply #1

Stack47 — Tue, 27 Mar 2007 21:16:41 GMT

You can only deduct the amount of the winnings and you probably didn't have to fill out an IRS form for winning $400.

Had you won $10,000, you have to declare that as income, but you can deduct up to $10,000 only by going long form (schedule A). Next year after hitting the pick-4 a couple of times, get a tax program and compare the difference between going long form and taking the standard deductions.

Are Lotto Losings Tax Deductible?

binar — Tue, 27 Mar 2007 18:38:17 GMT

Fellow Forum Members,

I'm not an accountant, and I know next to nothing about tax law. But I remember hearing some where never to throw away your losing lotto ticket slips because they can be claimed in ones' taxes as a loss. So if I spent $1000 on the lottery last year, and I won $400 and lost $600, do I legally have the right to declare a $600 lost in my tax form? I would really appreciate hearing back from anyone with an expert opinion on this matter. I have all of my ticket slips from... [ More ]