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Tax Question Offset Winnings/Losses

Topic closed. 7 replies. Last post 9 years ago by Stack47.

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King of Prussia
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Posted: October 13, 2008, 10:06 am - IP Logged

I won $1,000 this year on a scratch off ticket. I have also lost on scratch-of tickets this year. Am I able to claim the losses against the winnings to decrease the amount of taxes I will have to pay? I live in PA. Sorry if this has been asked before. I looked around, but couldn't find my answer.

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    Chief Bottle Washer
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    Posted: October 13, 2008, 10:22 am - IP Logged

    Yes, but only worry about all that reporting if the $1,000 was reported to the IRS.  Also, in order to make the whole thing work (whether it is reported or not), you need to keep all your losing tickets.  If you don't keep them, then you don't have proof that you lost the money if there is an audit.

     

    Check the State Lottery Report Card
    What grade did your lottery earn?

     

    Sign the Petition for True Lottery Drawings
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      Posted: October 13, 2008, 10:32 am - IP Logged

      Thanks for your help. Yes, it was reported to the IRS because I won the sum on one ticket. And, yes, I have kept all of my losing tickets-just in case :-)

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        Chief Bottle Washer
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        Posted: October 13, 2008, 1:21 pm - IP Logged

        Thanks for your help. Yes, it was reported to the IRS because I won the sum on one ticket. And, yes, I have kept all of my losing tickets-just in case :-)

        Great!  Then all you have to do is total up your losing tickets and cancel out that win on your taxes.  There is a special form for reporting gambling wins and losses, but maybe you've already seen that.

         

        Check the State Lottery Report Card
        What grade did your lottery earn?

         

        Sign the Petition for True Lottery Drawings
        Help eliminate computerized drawings!

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          Posted: October 13, 2008, 1:25 pm - IP Logged

          No, I haven't but I will look for it. Thank you so much for your help!

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            Zeta Reticuli Star System
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            Posted: October 13, 2008, 6:14 pm - IP Logged

            In a previous discussion about this, someone (I think it might have been RJOh) mentioned that just having losing tickets isn't good enough, you also should keep a log of how much you play and when.

            Otherwise someone could win something reportable (over $600 usually), go to a race track or lotto place, or casino Keno parlor, and just gather up losing tickets all at once.

            Also, the law is you can only write off your losses up to your winnings- in other words, if you win $1,000 and have $3500 in losers, only $1,000 of them count.

            Congrats on your win!

            Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

            Lep

            There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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              Posted: October 13, 2008, 6:37 pm - IP Logged

              Thanks. I have regular lottery tickets (which have dates) and scratch-off tickets from this year. I only want to offset the $1,000 in winnings with what I lose. I don't plan to go over, but any little bit helps!

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                Kentucky
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                Posted: October 13, 2008, 10:17 pm - IP Logged

                Thanks. I have regular lottery tickets (which have dates) and scratch-off tickets from this year. I only want to offset the $1,000 in winnings with what I lose. I don't plan to go over, but any little bit helps!

                If you already itemize your deductions, you can simply put $1000 as gambling losses on line 28 of Schedule A. If you use the Standard Deductions you'll have to calculate it both ways use the better of the two.