Bingo and similar games: Keep records of the number of games played, the cost of cards purchased, and amounts collected on winning cards.The specific proof required by the IRS may vary according to the type of gambling activity. Supplement this log with receipts, tickets, statements and forms and the like. Practically speaking, you should advise clients – especially those who are heavy gamblers – to keep a log of their activities stating the date of the activity, the location, names of any people who were there with you, the amounts wagered, the type of gambling and your winnings and losses. The IRS is a stickler for requiring adequate records to substantiate losses and this is a frequent audit item. Those winnings are taxed at ordinary income rates reaching as high as 39.6% on the federal level.īut you can’t just deduct the amounts that you say you lost on your return. In other words, gambling losses aren’t completely tax-deductible on their own, but you can write off losses up to the amount of your winnings. Silver lining: At least the client can use losers sustained in the same tax year to offset the winners. Naturally, if a client is lucky enough to pocket some loot, the IRS will make sure it receives its fair share in taxes. Do you have clients who enjoy wagering? It can be anything from buying daily lottery tickets to playing blackjack at a casino to betting at the racetrack.

Can i deduct gambling losses in 2024