Tax write offs: Scratch offs vs. Online game losersPrev TopicNext Topic

• TheOtherOne

  

  Nashville, TN
  United States
  Member #86,736
  February 9, 2010
  513 Posts
  Offline
  Feb 4, 2011, 12:31 am

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  I have been searching through this site for insight on tax deductions. I think I have the answer, but some things are unclear as far as, should I save scratch offs as receipts, or losing tickets such as Mega millions, powerball, etc.

  Here's the scenario: I won $1,000 from a Giant Jumbo Bucks scratch off here in TN. The lottery HQ gave my w2g.

  So now I want to save tickets as receipts, but that is one thing: I never actually receive a receipt when I buy a scratch off (or online game for that matter).

  1. Should I request and keep receipts for these games?

  2. Does it matter which ones I save, or should I strictly save proof of other Giant Jumbo Bucks losers?

   

  I see where it may be a good idea to keep a log of what I buy, along with the losing scratch off.

  3. What exactly does this log need to entail-- name of ticket, date, amount paid, location purchased?

  Any and all help is appreciated.

  Thanks!
• Stack47

  

  Kentucky
  United States
  Member #32,651
  February 14, 2006
  10,302 Posts
  Offline
  Feb 4, 2011, 11:26 am

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  In response to TheOtherOne

  Quote: Originally posted by TheOtherOne on Feb 4, 2011

  I have been searching through this site for insight on tax deductions. I think I have the answer, but some things are unclear as far as, should I save scratch offs as receipts, or losing tickets such as Mega millions, powerball, etc.

  Here's the scenario: I won $1,000 from a Giant Jumbo Bucks scratch off here in TN. The lottery HQ gave my w2g.

  So now I want to save tickets as receipts, but that is one thing: I never actually receive a receipt when I buy a scratch off (or online game for that matter).

  1. Should I request and keep receipts for these games?

  2. Does it matter which ones I save, or should I strictly save proof of other Giant Jumbo Bucks losers?

   

  I see where it may be a good idea to keep a log of what I buy, along with the losing scratch off.

  3. What exactly does this log need to entail-- name of ticket, date, amount paid, location purchased?

  Any and all help is appreciated.

  Thanks!

  We're allowed to deduct any gambling loss up to the value of the winnings which includes any online lottery games, scratch-offs, race tracks, and casino losses if the play is tracked with a players card. You should have no problem claiming $1000 in losses because that's only averages $20 per week. However to claim the $1000 loss, you'll lose your standard deduction.

  Professional gamblers are required to keep records of every bet they make and the results.

   

   
• ameriken

  

  Denver, Co
  United States
  Member #103,042
  December 29, 2010
  547 Posts
  Offline
  Feb 4, 2011, 12:43 pm

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  I save all my scratch-offs and losing lottery slips for the day that I win something taxable, plus I keep a daily record of cash spent on tickets and my winnings.
• Raven62

  

  25

  New Jersey
  United States
  Member #17,842
  June 28, 2005
  180,983 Posts
  Offline
  Feb 4, 2011, 2:27 pm

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  In response to TheOtherOne

  Quote: Originally posted by TheOtherOne on Feb 4, 2011

  I have been searching through this site for insight on tax deductions. I think I have the answer, but some things are unclear as far as, should I save scratch offs as receipts, or losing tickets such as Mega millions, powerball, etc.

  Here's the scenario: I won $1,000 from a Giant Jumbo Bucks scratch off here in TN. The lottery HQ gave my w2g.

  So now I want to save tickets as receipts, but that is one thing: I never actually receive a receipt when I buy a scratch off (or online game for that matter).

  1. Should I request and keep receipts for these games?

  2. Does it matter which ones I save, or should I strictly save proof of other Giant Jumbo Bucks losers?

   

  I see where it may be a good idea to keep a log of what I buy, along with the losing scratch off.

  3. What exactly does this log need to entail-- name of ticket, date, amount paid, location purchased?

  Any and all help is appreciated.

  Thanks!

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• TheOtherOne

  

  Nashville, TN
  United States
  Member #86,736
  February 9, 2010
  513 Posts
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  Feb 4, 2011, 3:38 pm

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  In response to Raven62

  Quote: Originally posted by Raven62 on Feb 4, 2011

  Lottery Post Forums Search is Your Friend:
  
  https://www.lotterypost.com/news/79646

  Thanks for the input everyone.

   

  Raven62 that is exactly what I needed, thank you. When i searched it only returned forum results.

   

  One other question that wasnt answered there: How long into next year should I hold on to the old tickets and records? I.e, if I were to get audited would it take place before the *next* tax season (in other words would I just need to hold them for 2012 then trash them)?