However, if you don’t keep good records, you could find yourself facing an IRS gambling losses audit. To offset these winnings, you can list your annual gambling losses on Schedule A of your tax return. Gambling winnings are considered taxable income, which means that you must report them as such for purposes of both federal and state income taxes. But how does your gambling affect your taxes? Perhaps you hit Atlantic City or even Vegas a few times a year, having fun while winning a few bucks.
If you’re like many Americans, you enjoy gambling.
