Itemize only. If you do not have enough in mortgage interest, property taxes, state income taxes paid, charitable contributions, medical expenses that exceed 7. Losses: You can deduct gambling losses that don't exceed your winnings as itemized deductions using Schedule A (Form 1040), but you need to provide records. If you are able to itemize your deductions, gambling losses can be. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. So if you won $1,000 but lost $2,000, you can only deduct up to $1,000. The winnings will still show up as income. You may deduct gambling losses only if you itemize deductions. they can provide a win/loss report. If you report winnings of $2,000 and your losses were $4,000 you can only deduct $2,000 in losses. If you qualify to itemize your deductions, you can use this form to deduct your gambling losses. If married, the spouse must also have been a U. Some states have poorly written laws. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. Your gambling loss deduction cannot be more than the amount of gambling winnings. However, if you itemize deductions on your tax return and claim losses (up to the amount of your winnings), then you may be able to deduct your losses on Line 27, Schedule A (Form 1040). Standard vs. You would be able to deduct $800 of gambling losses, which includes $300 of slot losses plus $500 of the $600 of lottery losses. This means that to claim them, you must choose to itemize your. While the IRS does not have a gambling losses tax, it does allow for you to deduct gambling losses on your tax return in the form of a miscellaneous deduction. Also, the amount of gambling losses you deduct cannot be more than the amount of gambling income you reported on your return. For example, if you had $10,000 as gambling winnings and $15,000 as losses, you can only deduct your losses up to $10,000. Whether it's $5 or $5,000, from the. Your. You actually have to have winnings to deduct losses, and then you can only deduct what you won. I just rounded to an even number, $10k, for the sake of the post. Michigan has a new individual income tax deduction for wagering losses sustained by casual gamblers, effective for tax years beginning in 2021. Gambling Losses May Be Deducted Up to the Amount of Your Winnings. For example, your medical and dental expenses are only deductible to the extent they exceed 7. So, if you won $5,000 on the blackjack table, you could only deduct $5,000 worth of losing bets, not the $6,000 you actually lost on gambling wagers during the tax year. Louisiana tax code currently allows an individual to deduct gambling losses from. Specifically, your income tax return should reflect your total year’s gambling winnings, from the big blackjack score to the smaller fantasy football. However, this is only the case if you are able to itemize those losses. Some states allow you to deduct gambling losses and offset taxes on your winnings. Need a coach for filing your income taxes?DoninGA. Without seeing your documentation it is hard to be sure, but based off your summary, it seems ok. $8,000 of the remaining undeclared loss can be netted against this gain for the year, bringing the total amount of declared losses to. If you do not have enough itemized deductions to exceed your standard deduction, the gambling losses have no effect at all. Though you may not be able to deduct all your losses. Gambling losses can only be deducted to the extent of gambling winnings. Furthermore, you cannot offset your winnings from one day. To deduct gambling losses, you must itemize your deductions: Claim your gambling losses as a miscellaneous deduction not subject to. However, if you received a Form. The gambling losses will be on Schedule A, if you itemize your deductions, as opposed to. , while gambling is not deductible. Gambling winnings are unique because you can also deduct your gambling losses and certain other expenses, but only in specific circumstances (see our article about this). If somebody with $300k losses has been reporting. You can't deduct it directly from the winnings. "You can deduct those losses to the extent of your winnings," Allen said. Most people — in fact, an estimated 90% of filers — take the standard deduction instead. You can't offset your losses dollar for dollar against your gains. YOU DO NOT PUT $500 IN THE INCOME SECTION. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. Gambling winnings are unique because you can also deduct your gambling losses and certain other expenses, but only in specific circumstances (see our article about this). In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard deduction. Michigan gaming but also would allow them to deduct losses attributable to gaming that did not occur in Michigan. Claim your gambling losses up to the amount of. Gambling losses can be the hardest to prove IF you’re audited. Tickets. Gambling losses are an itemized deduction. If you gamble at other times. com. These losses are not subject to the 2% limit on miscellaneous itemized deductions. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. Claim your gambling losses up to the amount of winnings, as "Other Itemized Deductions. Losses are reported on the Schedule A (Form 1040), Itemized Deductions. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. Claim your gambling losses up to the amount of winnings, such as Other Itemized Deductions. So that's when your deductions are more than the standard deduction, which is $13,850 for single and $27,700 for married filing jointly for 2023. Itemized deductions are expenses that you can claim on your tax return. However, effective for tax years beginning January 1, 2021, c asual gamblers may deduct wagering losses claimed by the taxpayer as an itemized deduction on the federal income tax return for the same tax year. ). You are allowed to deduct gambling losses, but only to offset income from gambling wins. Don't include on. Gambling Losses Tax. If you only claim standard deductions, you can’t use poker losses to offset your payable taxes. Say in scenario B that OP won 50k during the year and. How much can I deduct in gambling losses? You can report as much as you lost in 2023, but you cannot deduct more than you won. This form is used to report the winnings as taxable income. You can deduct gambling losses from your income, but there are a few catches. It’s also important to note that the only way you can deduct gambling losses is if you are already itemizing your deductions on a Schedule A. Ask your own question now. As before, a. If they do you want to have all paperwork ready to go that adds up to show the loss. You will then pay taxes on the $500 net profit if you can itemize. Regarding your federal tax returns, you may deduct gambling losses only if you itemize your deductions on Schedule A (Form. For the most part, an individual may claim those deductions allowable as itemized deductions under the Internal Revenue Code. The maximum deduction is the. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. sorry, that is wrong. However, if you do itemize, you can deduct the $1,300 as a gambling loss which will offset $1,300 of your gambling winnings. This replaced a tiered system, which had higher rates based on the amount you. If you don 't have access to all. Ones total tax is based on a wide variety of factors. Gambling losses are. The maximum deduction you can make is $2,000. The additional losses are not deductible. Based on your tax bracket, sports bettors in Pennsylvania could owe up to 35% of winnings to the federal government in addition to the 3. ONLY about 25% of the population itemizes! Chances are if granny hits a $2,000 jackpot. Can I deduct gambling losses? Though your luck may have run out on your bets, there’s still good news regarding your taxes. To deduct your losses from gambling, you will need to: Claim your gambling losses on Form 1040, Schedule A as Other Miscellaneous Deduction (line 28) that is not subject to the 2% limit. If you claim the standard deduction, you cannot deduct any gambling losses. The best outcome is that you cancel out any W2-G wins on your return. This can limit some taxpayers’ other deductions, including medical and miscellaneous itemized deductions. For 2021, the standard deduction numbers to beat are: Single taxpayers: $12,550. Practically, IRS auditors may allow some reconstruction of these expenses if. tax code is very broad in how it defines what is taxable. make sure you take note of all gambling losses for the year including other casinos. Schedule D is what you will need to fill out. To put it another way, you can’t deduct $2,000 from your gambling wins and use the remaining $1,000 to offset other forms of income. You can only itemize your losses up to $10,000 on your tax returns. This means that to claim them, you must choose to itemize your. In that case, your gambling loss deduction is limited to $7,500. They do not offset. The only golden rule is that the gambling losses to be deducted cannot exceed the winnings reflected as gambling income. Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-adjusted-gross-income (AGI) limitation. In 2013, North Carolina passed the Tax Simplification and Reduction Act (), which increased the standard deduction but eliminated many of the itemized deductions, including deducting for gambling losses. Technically speaking, these are not deductions at all, but adjustments to income, even though they are also called above-the-line deductions. Tip: For tax years 2020 and 2021 only: Even if you don't itemize deductions, you can still deduct up to $300 of cash charitable contributions on your 2020 tax return (the one you'll file in 2021). For tax years prior to 2018 and after 2025, you can only deduct casualty losses not reimbursed or reimbursable by insurance or. Relatively few Americans itemize deductions on their tax return. If you're in the red for the year, don't expect to recoup those losses with tax deductions. The Tax Cuts and Jobs Act of 2017 eliminated most miscellaneous itemized deductions allowable that are over 2% of adjusted gross income (AGI) in. 1. If you take the standard deduction, you cannot claim gambling losses. Your deduction for charitable contributions generally can’t be more than 60% of your adjusted gross income, but in some cases 20%, 30%, or 50% limits may apply. • Your deductions for gambling losses can’t exceed the gambling income you claimed. tax code is very broad in how it defines what is taxable. “Taxpayers can deduct gambling losses only up to the amount of their gambling. You can claim these deductions regardless of whether or not you claim the standard deduction or opt to itemize your deductions. What you have to report as income is your actual winning bets of $5000, NOT the $2529, because that numbers would be net winnings (winnings-losses). You won't be able to deduct gambling losses if you lost more money than you won (excess losses) or if you're taking the Standard Deduction. When it comes to deducting gambling losses, they are limited to the amount that is won while gambling. The only way you can deduct losses directly against winnings is if this was your trade and business. Yes, that would mean you cannot take the standard deduction. So you can use losses to “wipe out” gambling income but you can’t show a gambling tax loss. "You are able to deduct gambling losses up to the amount of your gambling winnings. Finally, if you. Claim your gambling losses up to the amount of winnings, as “Other Itemized. "If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. Therefore, if you don’t itemize and take the standard deduction, you can’t deduct gambling losses. Statements. Moving the gambling income to page one of Form 1040 and the gambling losses to miscellaneous itemized deductions (not subject to the 2% limit), and using the figures in the case, but calculating the changes using 2005 rates, he would have lost slightly over $1,200 of itemized deductions had he claimed gambling income of $325,668 ($10,538. It is the last category listed. The additional losses are not deductible. The 2019 standard deduction. Updated: Mar 5, 2023 / 12:00 PM MST. Gambling losses are deducted from the winnings as an itemized deduction. Gambling losses are deductible on your 2020 federal income tax return but only up to the extent of your gambling winnings. However, you get no deduction for your losses at all if you don’t itemize your deductions. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. Casual Gamblers: Casual gamblers, who gamble for leisure and don’t earn a living from it, can deduct gambling losses as a miscellaneous itemized deduction on Schedule A (Form 1040), subject to the limitation that losses can only be deducted up to the amount of winnings reported. Say you've got a W2G of $4k which you report on your taxes. S. Folks who deduct gambling losses from their state income bills may also see a tax hike, Erspamer said. This. But you can deduct disaster losses that occur within a federally-designated disaster area. You can only deduct gambling losses if you itemize your annual tax return. Limitations on loss deductions The amount of gambling losses you can deduct can never exceed the winnings you report as income. Gambling losses are not deductible unless you have gambling winnings. You can only deduct your losses up to the amount of winnings, and you have to itemize to deduct gambling losses. The $11K withholding has been reported to the IRS. It makes zero incentive to use any Sportsbook apps. In addition, gambling losses are only deductible up to the amount of gambling winnings. Note that if you don't itemize, you can't deduct your gambling losses: If you had $5000 in winning sessions and $6000 in losing sessions, you have to report the $5000 as income, and you can't subtract out your losses, because you're not itemizing. In other words, you can’t claim more in losses than you have in winnings, and you cannot claim the standard deduction. "For federal you have to show in the income on the 1040, your schedule "A" is where you take your itemized deductions and that's where you right off your gambling losses," Robinson said. You may or may not receive Form W-2G Certain Gambling Winnings, but you can report all gambling winnings in the same place in the TaxAct program. Losses are reported on Schedule A line 16. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. That is, if you won $50,000 and lost $55,000, you could only deduct $50,000 of your losses. If you itemize deductions , you may claim gambling losses up to your gambling winnings. Furthermore, the law only applies to people who itemize their deductions, instead of taking the standard deduction (which is $12,500 for single people and $25,100 for married couples). On the other hand, a professional gambler can deduct other expenses associated with their casino play (it's a JOB after all - ha!). You can’t, unfortunately, deduct losses that total more than your winnings. (Note, again, that you'll generally only wind up using itemized deductions if you don't use the standard deduction. Colorado state income tax and gambling winnings. You can also deduct $900 of the additional losses on Schedule A if you itemize! (The $900 sessions gains on Form 1040 can be still be deducted from other losses on Schedule A. For taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. Example: If you won $10,000 but lost $15,000. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. 4. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. 2022, see Pub. In tax year 2023. My W-2 G gambling win is offset by losses. They can decrease your taxable income. 4 You don’t have to itemize your deductions. Gambling Loss Limitation. NOTE:. If you don't itemize, you can't deduct the losses. The income from gambling shows up on the first page of your tax return. What if you don’t have enough deductions to itemize? Tough luck! Maybe. Itemized Tax Deductions. In that scenario, you would be taxed on the $11K. While you can write off some gambling losses if you itemize, that deduction can’t exceed the amount of your winnings. So if you won $2,500 gambling in 2014, the most you can deduct of your losses is $2,500 — no matter how much you lost. they can provide a win/loss report. If you earned $60k from your job, and $31k from your gambling with itemized deductions of nothing other than you're gambling losses, then your taxable income is $61,000. Claim your gambling losses up to the. "Let's say you bet $1,000 and you get $3,000 back," says Romeo Razi, a Las Vegas-based. You can only deduct your losses up to the amount of your winnings. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. 2021 - $3,000 loss. Footnote 7 Gamblers can deduct their gross losses but only if they are itemizing deductions and these losses can only be used to offset gross winnings. "Let's say you bet $1,000 and you get $3,000 back," says Romeo Razi, a Las Vegas-based. In addition, you won't be able to write off gambling losses unless you itemize your deductions . The IRS takes a broad view of what constitutes a. My point is if you only have evidence of a $50k loss that is all I would claim. ” You cannot reduce your gambling winnings by your gambling losses and report the difference. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. Under Federal law, gambling losses are deductible for Federal tax purposes for those who are able to itemize their deductions. In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard. Technically speaking, these are not deductions at all, but adjustments to income, even though they are also called above-the-line deductions. 1040 Schedule A: Itemized Deductions. You must include the U. As a recreational gambler, you cannot deduct any expenses related to gambling (other than losses as an itemized deduction). You can only itemize your losses up to $10,000 on your tax returns. Write-offs can also only be for losses wagered in Michigan, not other states. Gambling income is reported under the Federal Taxes / Wages and Income tab. If you were issued a W2G form for your FanDuel gambling winnings, it is mandatory to report them on your tax return. If you itemize your deductions, you can offset your winnings with your game losses. And no, you don't need to itemize either (Schedule A). In addition to the limitation on how much you can deduct, you can only deduct your sports betting losses if you itemize your deductions. Losses can be claimed up to the amount of your winnings. If you itemize, you can deduct $400 for your losses, but your winnings and losses must be handled separately on your tax return. 4. Topic No. For example, if you wagered $5,000 and won $2,000, you can only deduct $2,000 in losses. Level 15. So if you had winnings of $2,000 and losses of $5,000, your deduction is. People who have claimed gambling losses as a deduction from their IRS returns know that the IRS requires you to itemize your deductions to do so. e. So you can use losses to “wipe out” gambling income but you can’t show a gambling tax loss. 6k (50 - 12. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. Yes, you are correct that you can zero out the income with the cost of the used items, but the reduction is only allowed to the extent of the earnings. Itemizing your deductions might benefit you if the amount. So if you make $60,000, and you choose the standard deduction amount of $12,550, your. You can enter your winnings, and then keep clicking through the interview to enter gambling losses. Student Loan Interest. Losses do not offset winnings dollar for dollar. Or at all for that matter. Still, if your standard deduction is greater than your itemized deduction, there is no benefit to claiming the gambling losses. You can't offset your losses dollar for dollar against your gains. This final category of itemized deductions includes items such as gambling losses to the extent of gambling winnings, losses from partnerships or subchapter S corporations, estate taxes on income. $19,400 for head of household. To enter your gambling winnings and losses in. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. The key is you can’t deduct losses that amount to more than what you’ve won. Generally, you can only deduct charitable contributions if you itemize deductions on Schedule A (Form 1040), Itemized Deductions. 1040 Page 2: Income Tax. Those include total income, sources of that income, filing status, number of dependents, what deductions and/or credits one qualifies for, and a host of other variables. We do not control the destination site and cannot accept any. You cannot deduct gambling losses unless you itemize (or are a professional gambler). You can't deduct more in gambling losses than you have in gambling winnings for the year. Your gambling losses up to the amount of your winnings ($11K) can be deducted as an itemized deduction on Schedule A. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. Some states either don't allow a deduction for gambling. Secondly, the deduction for your losses is only available if you are eligible to itemize your deductions (have mortgage interest, real estate taxes, medical, charitable deductions, etc. To make the matter worse. Itemized Deductions: Gambling losses are considered itemized deductions rather than above-the-line deductions. If you do elect to itemize your federal deductions, calculate all your gambling losses from the year. If you don't have enough deductions to itemize, your screwed. Even if you have more losses than winnings, assuming you have nothing else to itemize and your losses dont exceed the standard deduction, you are freaking screwed and are actually going to PAY money. The 2017 tax law, known as the Tax Cuts and Jobs Act, also modified the definition of “gambling losses” under Section 165(d). The amount of losses you deduct can’t be more than the amount of gambling income you reported on your return. For instance, if you lose $3,000 on one trip to the casino and win $2,100 on another trip in the same year, you can write off $2,100 in losses to offset the $2,100 in winnings, leaving you with a total of $900 of taxable gambling income. For example, if you had $10,000 in gambling winnings in 202 2 and $5,000 in gambling losses, you would be able to deduct the $5,000 of losses if you. Form 1040 Schedule 1 and U. Someone stole your stuff. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. However, you must be able to substantiate your gambling losses with proper documentation, such as. Gambling winnings can also be subject to state-level taxes, with treatment varying across states. Gambling losses can only be deducted to the extent of gambling winnings. However, you can only deduct your loss up to the amount you report as gambling winnings. If you itemize instead of taking the Standard Deduction, you can deduct gambling losses up to the amount of your winnings. Limitations apply. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. Gambling. You never want to rely on your win/loss reports, but you can use them as ancillary data to back up your notes. You can also deduct $900 of the additional losses on Schedule A if you itemize! (The $900 sessions gains on Form 1040 can be still be deducted from other losses on Schedule A. You’ll need a record of your winnings and losses to do this. Generally, if your deductions exceed $2,690, it will benefit you to itemize. So that's one thing to. (See “Are You a Pro?” below. You have to report that. If you itemize deductions, you can offset your winnings by deducting gambling losses. If you use itemized deductions, your gambling losses qualify as a deduction on your federal tax return. “For example, if you have $5,000 in winnings but $8,000 in. In that case, your gambling loss deduction is limited to $7,500. You are allowed to list your annual gambling losses as an itemized deduction on Schedule A of your tax return. Charitable Cash Contributions, Even If You Don’t Itemize. The gambling losses, however, are reported on your Schedule A when you itemize your deductions as miscellaneous deductions. If you do not have enough to itemize, however, you cannot deduct the gambling losses. Yes, you need to report gambling winnings from form 1099-K. The key is you can’t deduct losses that amount to more than what you’ve won. The standard deduction for 2023 is: $13,850 for single filers and married taxpayers filing separately. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return ; Please refer to this IRS link for more information about reporting gambling winnings and losses. S. This means choosing to report your itemized deductions rather than taking the standard deduction. S. Itemize only. $27,700 for married taxpayers filing jointly or qualifying widows/widowers. The tax deduction for gambling losses is only available if you itemize deductions. You must report the full amount of your winnings as income and claim your allowable. You can deduct gambling losses only up to the extent of gambling winnings, and the losses can't exceed the winnings. You would need to be a professional gambler. The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. you don’t have to count your winning wagers toward your. Online gambling and. In addition, your gambling losses will only be able to be deducted on Schedule A if you itemize your deductions, as opposed to taking the standard deduction. You can deduct gambling losses only if you itemize your deductions. There is no dollar limit on the write off but it’s limited to the extent of the gambling winnings. If you itemize, you can claim your gambling losses up to the amount of your winnings on Schedule A, Itemized Deductions, under ”Other Miscellaneous Deductions. You report gambling winnings as Other Income on the 1040. What if you don’t have enough deductions to itemize? Tough luck! Maybe. You can deduct your $50,000 of gambling losses as an itemized deduction. The amount of gambling losses you can deduct can never exceed the winnings you report as income. TurboTax prompts you to enter your gambling losses after you enter your gambling winnings. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. You must report your gambling winnings even if Wisconsin income taxes are not withheld. Gambling losses are reported on Schedule A (the form for itemizing). Rather, you report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. They’re deductible, but only as itemized deductions. However, for a casualty loss that is the result of certain federally declared disasters (Form IT-196, line. If. But if you have paperwork to support it, go for it. To make. However, gambling losses can only be claimed if you itemize your deductions on Schedule A of your Form 1040. If you itemize, you can claim your gambling losses up to the amount of your winnings on Schedule A, Itemized Deductions, under ”Other Miscellaneous Deductions. You can't use it to offset your gambling gains in other years. You can deduct gambling losses if you itemize your deductions on your tax return, but you cannot deduct more than the gambling income you received. Gambling losses are an itemized deduction; you can only get a deduction if the combination of all of your other itemized deductions exceeds your standard deduction. Bookmark Icon. Gambling winnings are reported on Form 1040 Schedule 1 Line 21 as Miscellaneous Income. Mega Millions. Note that if you don't itemize, you can't deduct your gambling losses: If you had $5000 in winning sessions and $6000 in losing sessions, you have to report the $5000 as income, and you can't subtract out your losses, because you're not itemizing. Let's say you won a total of $7k at 3 different casinos but you play at 5 different casinos. So if you lose $500 but win $50, you can only deduct $50 in losses on. Therefore, if you lost $3,000 gambling, and won $1,000 of it back, only $1,000 can be deducted as a. When wagering, there is the chance of incurring losses. You should also have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings to support. You can deduct gambling losses only up to the extent of gambling winnings, and the losses can't exceed the winnings. If you don’t keep careful records of your gamling losses, you could face an IRS gamling losses audit. You are permitted to deduct gambling losses if you itemize your deductions. You don't report your. SHE OWES AT LEAST 25%. The Internal Revenue Service allows you to deduct gambling losses if. Winnings may be reported on a W2-G. To maximize your deductions, you'll have to have expenses in the following IRS-approved categories: Your expenses in certain categories must cross various thresholds in order to itemize. So, the. You are allowed to list your annual gambling losses as an. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. Your total gambling deduction is limited to $800, the amount of your winnings. In deluxe version when I claim the loss amount As the same amount as the win it does not change my refund amount back to where it was before. For example , if you had $10,000 in winnings with $7,000 in losses, the loss would offset (reduce) your taxable winnings to $3,000 ($10,000 – $7,000 = $3,000) and you'd only pay tax on $3,000 instead of the full.