What can I deduct for gambling losses if I only play Blackjack?

From what I’ve heard winnings on table games are non-taxable. So say I’ve lost approx. $13,000 this year and won approx. $6,000 playing blackjack can I deduct the $6,000. I haven’t kept track or gotten any slips because sometimes it’s a couple hundred here or there and other times it’s a couple thousand here or there. But, obviously it’s been more loss than gain.

5 Responses to “What can I deduct for gambling losses if I only play Blackjack?”

  1. the tax lady says:
    February 12, 2010 at 3:43 pm

    All winnings are taxable.

    So, once again “I’ve heard” is 100% wrong. See below.

    You have to declare the entire $6,000 of winnings and if you have no documentation, you have nothing to itemize for losses.

    From IRS pub 529.

    Gambling Losses Up to the Amount of Gambling Winnings
    You must report the full amount of your gambling winnings for the year on Form 1040, line 21. You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. You cannot deduct gambling losses that are more than your winnings. Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR).

    Proof of winnings and losses. In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment.

    For specific wagering transactions, you can use the following items to support your winnings and losses

    Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc.). The number of the table at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier’s cage.

  2. Jss says:
    February 12, 2010 at 3:50 pm

    Winning is taxable income, You must report it on your tax return.
    Gambling losses can be deducted only as itemized deduction, and the maximum limit of the deduction is equal to gambling income that is maximum deduction is $6000.

  3. Jesse H says:
    February 12, 2010 at 4:05 pm

    The guidance on this issue is still pretty weak. Do you have to report every winning hand to every losing hand? The record keeping would make this impossible, so do you report all winnings/losses on a per day basis? Per week? Per Month?

  4. shoredude2 says:
    February 12, 2010 at 4:57 pm

    If you didn’t keep a log of ALL of your winnings and losses, the IRS will disallow any deduction of losses. And all winnings are required to be reported no matter where they are won. They currently are looking at the winnings and losses per session, not per hand or year.

    Some Canadian agencies advise their clients who win in Vegas and have mandatory withholding, that the IRS won’t allow table game losses as a deduction since they don’t issue W2G’s. This might be strictly a regulation for foreign winners, as I’ve never come across it for US residents.

  5. tro says:
    February 12, 2010 at 5:38 pm

    to declare any losses(provided you itemize) you need substantial proof and you can only deduct losses to the limit you report as winnings
    if you haven’t keep good records, it could very well come back to haunt you in an audit

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