Tax Fact: Big Day at the Del Mar Racetrack? Don’t Forget Your Loss Receipts
Money earned from gambling whether in a casino, racetrack, or otherwise, is taxable income that must be reported on your tax return. In some cases, the casino or racetrack may even issue you a W-2G reporting your earnings and possible tax withholdings, the same as you would get a W-2 for your earnings as an employee. Normally, gambling losses are not deductible; however, they are deductible up to the amount of gambling winnings. Therefore, if you do win at the racetrack you can offset the winnings by any losses you had during the year. In order to properly document the losses you should keep your losing tickets for documentation or if you are at a casino you could use a player’s card or ATM receipts at the very least. Winning at the track can be very fun and exciting, make sure to keep track of all your losses so you can help yourself minimize the taxes on your new cash.