“Gambling income includes winnings from raffles, lotteries, horse races, casinos and the fair market value of prizes.” “In short, no net gambling losses are deductible,” he said. Gambling losses are deductible to the extent of winnings on your federal return, but only if you itemize deductions and only to the extent you report gambling income, said Karl Graf, a certified financial planner and certified public accountant with Modera Wealth Management in Westwood.
Here’s some of what you should discuss with your tax preparer. When it comes to any kind of income - gambling winnings included - it’s important that you work with a tax preparer who knows your entire financial situation so you can properly assess what deductions you can take. When are losses deductible – or winnings taxable – and is it different for federal and New Jersey?Ī.
I’ve recently started gambling online - don’t worry - it’s just with “fun money,” not with funds I need for my expenses.
