Tax Considerations for Fantasy Sports Fans - TurboTax Tax.
The law is not as kind to nonresidents: While nonresidents must also include U.S.-source gambling winnings as income, they cannot deduct gambling losses against those winnings. Nonresidents whose gambling winnings are connected to a trade or business may deduct gambling losses to the extent of winnings, however, under Sec. 873.
Gambling losses are indeed tax deductible, but only to the extent of your winnings. This requires you to report all the money you win as taxable income on your return. However, the deduction for your losses is only available if you are eligible to itemize your deductions. If you claim the standard deduction, then you can’t reduce your tax by your gambling losses.
Additionally, it seems that losses up to winnings are not deductible on your MA state return: For Massachusetts purposes, losses up to winnings are not deductible even if they may be claimed as an itemized deduction on U.S. Form 1040, Schedule A.
Substantiating Gambling Losses in Tax Court. April 14th, 2011 taxdood Leave a comment Go to comments. Many taxpayers who report gambling winnings and losses don’t maintain satisfactory records of their gambling activity. Page 12 of this IRS publication states: You must keep an accurate diary or similar record of your losses and winnings. Your diary should contain at least the following.
For instance, you can continue to deduct gambling losses, up to the amount of winnings, on 2017 returns and beyond. The TCJA did, however, modify the gambling loss deduction, beginning in 2018. For this purpose, the definition of gambling losses has been broadened to include other expenses incurred in gambling activities, such as travel back and forth from a casino or track.
Gambling losses are not deductible for Connecticut income tax purposes even though, in certain circumstances, they are deductible for federal income tax purposes. 3. May a resident or part-year resident claim a credit against his or her Connecticut income tax for income tax paid to another state on gambling winnings?
Reporting income or losses from fantasy sports as business income. If you can establish that you play fantasy sports as a business, you can report your net profit as business income on Schedule C. The great advantage to this tax choice is that you can then report all losses as well. If you have a net loss for the year, you can use that loss to.