In general, you can deduct your amount of gambling losses up to the amount of your gambling winnings. You should speak with a Virginia tax attorney about whether and how to deduct your losses as the rules can be confusing. If you itemize your tax deductions you may be able to deduct some of your gambling losses.

Amounts that exceed $600 when the payout is 300 ties or more of the original bet.

Poker tournament winnings exceeding $5000.

In fact, racing tracks, casinos and other gambling businesses are required to report certain levels and types of winnings and even withhold taxes from them. So if you had a particular good day betting the ponies, you had better let the IRS in on it, because they are going to find out one way or another. Bigger wins from commercial gaming establishments, on the other hand, come with a paper trail. Smaller amounts are hard to trace without a paper trail, and the truth is hardly anyone knows that they have to declare that money.

Whether you win $20 playing bingo at your community center clubhouse or thousands betting the sports book at your local casino, your gambling winnings are considered taxable income and are supposed to be reported to the IRS.

Wherever your gambling fame and fortune fantasies lie, it is a good idea to have at least a fundamental understanding of the tax consequences of your gambling wins and losses so that you not only properly report what is required by law, but also take full advantage of any opportunities to take tax deductions when allowed. Perhaps blackjack is your game and you are doubling down on your chances of taking your 21 winnings and retiring someday. Maybe you are a whiz at Texas Hold ‘Em and just know that it is only a matter of time until you make it to the final table of the World Series of Poker. You might have big dreams of hitting the big progressive slot machine jackpot in Las Vegas. How and When to Report Gambling Winnings and Losses News

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