Gambling losses can be claimed as tax deductions, but how do you prove them? Essential documentation is key. Follow these tips to ensure you’re covered:
- Keep a gambling diary with dates, types of games, locations, and amounts won/lost.
- Secure itemized statements from casinos or betting platforms.
- Retain bank statements showing withdrawals for gambling.
- Save winning and losing tickets or receipts.
- Collect form W-2G given by the payer when winnings require reporting.
For more information on gambling and taxes, visit the IRS website.