|Posted: May 5, 2011, 1:31 pm - IP Logged|
Are lottery losses really tax-deductible? Another tax deductible tax?!?!?
They're tax deductible only against gambling winnings, but nothing else.
If you win $1000, that is considered income and you could be taxed on it.
However, if during the same year, you have $2000 in gambling losses, you can apply $1000 of those toward the winnings, so you would have a net tax increase of $0. So you can only apply the amount of losses that is enough to offset the winnings.
The remainder of the losses is not tax deductible.
Give someone a fish and feed them for a day. Teach them to use the internet and they won't bother you for weeks.