An individual can deduct gambling losses only to the extent of his or her gambling winnings (which are included in gross taxable income).
Gambling losses are deductible as miscellaneous itemized deductions not subject to the two-percent-of-adjusted-gross-income floor on Schedule A, Form 1040.
Gambling losses cannot be deducted from gross gambling winnings to report net gambling winnings (losses).
If a taxpayer does not itemize deductions then the gambling losses cannot be used.
Married taxpayers who file a joint tax return must each treat their gambling winnings and gambling losses in the above way and include them on their joint tax return.
A "professional gambler" reports gambling winnings/income and losses on Schedule C, Form 1040.
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