Did you win any money from your Super Bowl pool? <\/p>\n
Congratulations! <\/p>\n
Now make sure you report iton your2017 tax return. <\/p>\n
Yep. Gambling winnings of any kind are taxable income, and Uncle Sam wants his cut. <\/p>\n
So if you had winnings from the Super Bowl, a fantasy league or even the local lotto, make sure you tally them all up with the money made in Vegas last year. <\/p>\n
All gambling winnings are reported as \"Other Income\" on line 21 of your Form 1040. <\/p>\n
Your losses, on the other hand, are limited. <\/p>\n
You only can deduct your losses to the extent of your winnings, says Nathan Rigney of The Tax Institute at H&R Block. <\/p>\n
So if you won $1,000 last year but lost $1,500, you can only report $1,000 in losses. <\/p>\n
The other $500 is, well, lost. <\/p>\n
And you can't carry those losses back or forward, like you can in other situations, notes Cari Weston, director of tax practice and ethics for the AICPA. <\/p>\n
It gets worse. Your losses are reported on line 28 of your Schedule A - Itemized Deductions. <\/p>\n
So if you are a high earner, your itemized deductions may be reduced because of the overall adjusted gross income limitation. Then you won't be able to deduct the full amount of your gambling losses. <\/p>\n
The good news is that losses from one kind of gambling are deductible against gains from another kind. <\/p>\n
So let's say in 2016 you played the lotteryevery week at $10 a pop and didn't win a thing. But you did hit it big at your Church bingo night and won $3,000. Since you had winnings, you at least can take a deduction for the $520 you dropped (wasted) on the lotto. <\/p>\n
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Read more from the original source: <\/p>\n
How to Handle Gambling Wins and Losses This Tax Season - TheStreet.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Did you win any money from your Super Bowl pool? Congratulations! Now make sure you report iton your2017 tax return. Yep. Continue reading