Gambling losses are indeed tax deductible, but only to the extent of your winnings and requires you to report all the money you win as taxable income on your return. The deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses. Get every deduction you deserve. With TurboTax Deluxe, we'll search over tax deductions and credits so you get your maximum refund, guaranteed.
If you're betting on the March Madness basketball tournament — or other sporting events — probably the last thing on your mind is taxes. Most of the March Madness winnings probably won't be declared for tax purposes, though it should be. The federal tax rules on gambling haven't changed much in recent years and weren't significantly altered by tax reform in The main provisions are:. As noted, the IRS requires that you maintain records of your gambling activities if you hope to deduct losses. Deductible gambling expenses include travel expenses to or from a casino. Gambling winnings also are subject to taxation by states that impose income taxes.
Are you betting on March Madness? Here's what to know about taxes if you win — or lose
Why Zacks? Learn to Be a Better Investor. Forgot Password. If you had a successful night at the slots or poker tables, you're going to have to share some of the lucky proceeds with Uncle Sam.
The chaos of March Madness is in full swing for many sports gamblers who leaned heavily on regional Big Ten teams to fill out their bracket or bet online. Tax and gambling experts warn: Don't bet on being able to deduct your gambling losses. Under the U. Tax Code, any income earned from gambling is taxable whether the gambling is legal or illegal.