You cannot directly offset your gambling winnings with gambling losses.
Gambling winnings must be reported as income on your 1040 tax return and are fully taxable. Winnings include lotteries, raffles, horse races, casinos, and the fair market value of prizes such as trips, golf carts, etc. This list is NOT all-inclusive.
Gambling losses can only be deducted if you itemize deductions and file Schedule A. The amount of losses you can deduct cannot be more than the amount of gambling income you have reported on your 1040. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. It is also a good idea to keep a diary or similar records.
If you do not file Schedule A, you can not claim any gambling losses. And, with the increased standard deduction for 2024, more taxpayers will find that they are no longer filing schedule A which eliminates the gambling loss deduction and makes all gambling winnings fully taxable.
