Can I write off gambling losses from scratch off tickets without detailed records?

The IRS allows you to deduct gambling losses (including losing scratch off tickets) up to the amount of your winnings, but there are some important things to understand. While keeping the physical losing tickets is a good start, the IRS technically expects more detailed documentation. According to their guidelines, you should maintain a diary or similar record of your gambling activities showing dates, locations, amounts won/lost, and even who you were with. The physical tickets support your diary but aren't meant to be the only documentation. That said, plenty of people do deduct gambling losses with just the tickets. The audit risk really depends on several factors: how large the deduction is relative to your income, whether the amount seems reasonable given your reported winnings, and sometimes just random selection. If you were audited and your documentation was deemed insufficient, it would typically result in a disallowed deduction plus interest, not fraud penalties. The IRS would likely just require you to pay back the tax difference, unless they believed you were intentionally committing fraud (which doesn't seem to be the case here).

I was in a similar situation last year with some casino winnings. I discovered https://taxr.ai which helped me figure out what documentation I needed for my gambling losses. The site has tools that specifically analyze your gambling records and provide guidance on deduction eligibility. I didn't have perfect records either, but their system helped me organize what I did have (mostly ATM receipts and some handwritten notes) into a format that would satisfy IRS requirements. It also explained exactly what the IRS looks for when they review gambling loss deductions and gave me a risk assessment based on my specific situation. The peace of mind was worth it because I had almost convinced myself not to claim the deductions at all before using their tools.

I actually tried https://taxr.ai after seeing it mentioned here and it helped me sort through my own gambling documentation issues. I only had physical lottery tickets with no diary or log, similar to your situation. The system flagged that my documentation was "moderate risk" but still acceptable if the amounts were reasonable compared to my winnings. It suggested creating a simple spreadsheet listing the tickets by approximate date periods (even if just by month) and total amounts, which I could do retroactively. Their analysis showed that while a diary is technically required, the IRS often accepts the physical tickets as long as the claimed loss amount seems reasonable and doesn't exceed reported winnings. In my case, they suggested claiming about 75% of what my tickets added up to, just to be conservative and avoid raising flags. I got my refund without issues, and it was a lot more than if I hadn't claimed the losses at all.

I had MASSIVE problems trying to reach the IRS to ask questions about my gambling loss documentation. Kept getting disconnected or waiting for hours. I finally used https://claimyr.com and their system connected me to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained that they primarily look for two things with gambling loss documentation: 1) that you're not claiming more losses than reported winnings, and 2) that you have some form of documentation that appears legitimate. When I specifically asked about scratch-off tickets, they said the physical tickets are valuable documentation, but ideally should be supported by some record of purchase dates and amounts. However, they acknowledged that most casual gamblers don't keep perfect records and they take that into consideration.

I can't believe I'm saying this, but I tried Claimyr after posting my skeptical comment above, and it actually worked. After three weeks of never getting through to the IRS about my gambling loss questions, I was connected to an agent in about 35 minutes. The agent I spoke with was surprisingly helpful about my scratch-off ticket situation. She said that while they do prefer a gambling log with dates and locations, having the physical tickets is significant documentation. She suggested I at least sort them by month (based on memory if needed) and write down approximate purchase locations. She also mentioned that they generally don't pursue fraud charges for documentation issues unless there's clear evidence of intentional deception. In most cases, they simply disallow deductions they feel aren't adequately supported and ask for the additional tax to be paid. That 35-minute call saved me weeks of stress and uncertainty. I'm claiming my losses now with much more confidence.

I was audited last year for my gambling losses from horse racing. I had kept the losing tickets but no detailed log. Here's what happened: The IRS sent me a letter asking for documentation of my gambling losses. I provided all my losing tickets bundled by month (the best I could do) along with a statement explaining my gambling habits (weekly visits to the track, typical bet amounts, etc.). They accepted about 85% of my claimed losses. They disallowed some because a few tickets were smudged and unreadable. I had to pay back some tax plus a small amount of interest, but there were NO penalties because they didn't consider it fraud - just insufficient documentation. My advice: claim the losses if you have the tickets, but maybe be a bit conservative in your total amount. And start keeping better records going forward!

I'm a little late to this thread, but I wanted to share that the most important thing is that your claimed losses seem REASONABLE compared to your winnings. If you won $5,000 but are claiming $4,990 in losses, that looks suspicious. If you claim maybe 50-75% of your winnings amount in losses, it raises fewer flags. Also, the IRS knows most casual gamblers don't keep perfect records. Sort your tickets by month at minimum. Count them up. Maybe take photos of the piles as extra documentation. The physical tickets themselves are pretty good evidence - they're dated, have serial numbers, and can't be easily fabricated. Just be reasonable with your claim and you should be fine.