Submitted By: someone
Answered: January 20, 2020 9:32 pm

I won some lottery money. What can I deduct?

You cannot simply net your gambling losses against your winnings. You must report all of the lottery money as income. Then, if you itemize personal deductions (using Schedule A) instead of claiming the standard deduction, you can deduct gambling losses as an “other” itemized deduction. Such losses are not limited to what you spent on lottery tickets; they include all gambling losses (e.g., horse racing, bingo) that you can prove, but the total deduction for gambling losses cannot exceed the gambling winnings you report.

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Tax Glossary

Mortgage interest

Fully deductible interest on up to two residences if acquisition debt secured by a home is $1 million or less, and home equity debt is $100,000 or less.

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