Can I Claim Gambling Losses as Itemized Deductions for 2024 Taxes?

Good news - gambling losses are still deductible as an itemized deduction! The Tax Cuts and Jobs Act did suspend many miscellaneous itemized deductions, but gambling losses were preserved with a specific limitation. You can deduct your gambling losses up to the amount of your gambling winnings. So in your case, you could deduct up to $11,200 of your losses (the amount of your winnings), but not the full $14,500. The losses in excess of your winnings ($3,300) can't be deducted or carried forward. The documentation you've maintained sounds excellent - journal entries, ATM receipts, and player's club statements are exactly what you need if you're ever audited. Make sure you report the full $11,200 winnings on your tax return (the IRS already knows about this from your W-2G), and then claim the $11,200 in losses as an itemized deduction on Schedule A.

I went through a similar situation last year and found this amazing tool that really helped me sort it all out. Check out https://taxr.ai - it's specifically designed to analyze documentation like your gambling records and receipts to maximize your legitimate deductions. I was in the exact same position with about $9K in winnings and had all these losses but wasn't sure how to properly document them for tax purposes. Their system guided me through exactly what documentation I needed and how to properly report everything. It even helped me determine whether itemizing or taking the standard deduction was more beneficial in my situation.

Wanted to follow up here. I ended up using taxr.ai for my gambling documentation and it was seriously helpful! My situation was even messier than the original poster - I had wins from 3 different casinos but only formal W-2Gs from one of them. The system analyzed all my player's card statements, bank withdrawals, and even my crappy handwritten journal notes. It organized everything into a proper gambling log that satisfied IRS requirements and made it clear exactly how much I could deduct. Turns out I had almost $5k in deductible losses that I might have missed without proper documentation. This definitely saved me from a potential audit headache!

If you're planning to itemize and deduct those gambling losses, you might run into questions or need to talk to the IRS. I spent WEEKS trying to get through to them about a similar situation last year. Finally discovered https://claimyr.com which got me connected to an IRS agent in about 20 minutes instead of the usual hours-long hold times or "call back later" messages. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical at first but it actually worked. The IRS agent confirmed that my approach to deducting gambling losses was correct and gave me specific advice about the documentation I needed to maintain. Much better than guessing or relying on random internet advice (no offense to anyone here).

Just wanted to come back and eat my words. After posting my skeptical comment, I was desperate enough to try Claimyr because I had a gambling tax issue similar to the OP's that needed clarification directly from the IRS. Not only did it work, but I got connected to an IRS agent in about 15 minutes! The agent confirmed that my approach to deducting gambling losses was correct and gave me specific guidance on documentation. Best money I've spent this tax season considering I was about to give up and potentially leave thousands of dollars of legitimate deductions on the table. Sorry for being so negative before - sometimes things that sound too good to be true actually work!

Something nobody's mentioned yet - you need to be careful where you report the gambling income. The W-2G amount goes on the "Other Income" line on Schedule 1, not directly on the 1040. And the losses go on Schedule A under "Other Itemized Deductions." If you mess this up it can trigger a mismatch notice from the IRS. Also, if your gambling was part of a "professional" activity rather than hobby gambling, the rules are totally different. But based on what you described, you're definitely a recreational gambler.

I just want to point out that the record keeping you did is PERFECT. I'm a former casino employee and so many gamblers don't keep proper records then get burned at tax time. The fact that you have: - A gambling log with dates, locations, games - ATM receipts - Player's card statements That's exactly what the IRS wants to see. One tip: if you do get audited (unlikely but possible), they typically ask for day-by-day records that show your starting bankroll, amounts bet, amounts won/lost, and ending bankroll for each gambling session. If your journal includes that level of detail, you're golden.

Just wanted to add one more important point that might help you and others in similar situations. When you're dealing with gambling losses that exceed your winnings, make sure you understand the "hobby loss" rules. The IRS treats recreational gambling as a hobby, which means losses can only offset winnings - you can't use gambling losses to reduce other types of income like your salary. Also, keep in mind that even though you can deduct up to $11,200 of your losses, you still need to report the full $11,200 in winnings as income. This means you'll owe taxes on that amount even though you ultimately lost money overall. It's one of the frustrating aspects of gambling taxation - you pay taxes on gross winnings, not net results. One strategy some people use is to spread their gambling activities across tax years to better manage the tax impact, but that's more of a planning consideration for future years. For 2024, you're stuck with the current situation, but at least you have excellent documentation to support your deductions!