I have a question regarding gambling income/losses. I have various W-2Gs in 2017 totaling $50,000. However, looking at my bank statements, I have $150,000 in winnings and $200,000 in losses. On my return, would I report $50,000 in income and $50,000 in losses, or would I report $150,000 in winnings and $150,000 in losses? Many of the "winnings" are below the W-2G threshold, but I read that all winnings have to be reported. Would having itemized deductions of additional $150,000 for current-year losses be a red flag when I never itemized before?
You should report all gambling winnings and losses. Your losses can only be deducted to the extent of winnings.
There are separate rules for a professional gambler. If you are one, I recommend you consult a CPA for reporting guidance.
For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.
Answered by: Joseph G. Tropiano II, CPA, is with Siana, Carr, O’Connor & Lynam LLP in Paoli, Pa.