I have a question regarding cash wins. Lets say within the last 8 months I loss $12k playing poker. Then within the last month, I won $10k back. Do I have to claim that money as income if I am still down $2k in the last 9 months? I heard something about claiming loses but not sure how that works. Thanks.

Depends the laws where you live.

California

In california the law is that you have to keep studious records of your buyins/cashouts. In practice they probably won’t audit you. Honestly unless you are a professional or playing tourneys I wouldn’t worry about it. If you are playing tourneys, keep the receipts for your records.

The rule about buyins and cashouts is that they only count for the tax year where they happened. So if the 12k win happened last year and the 10k loss happened this year, technically you will be taxed on the 12k for the full amount. Of course how you file it in practice is between you and uncle sam.

You want to read the forum/thread on taxes, here: https://forumserver.twoplustwo.com/5...-poker-740589/

Short version - unless you are a professional gambler, you cannot just net your winnings and losses, though if you itemize your deductions and they are not capped or limited it may end up more or less the same:

What income?

Thanks for doing your due diligence on the tax situation. Unfortunately the posts are in line with my understanding of current tax law where winnings and losses are kept separate unless you are claiming to be a professional.

I believe there are provisions for income streams, even 'hobbies', that allow for only net earnings to be taxed. However I believe the IRS also limits you to 3 straight years of losses and you can't pick 'at your convenience' when you claim participation, it needs to be steady once you start it. You definitely should talk to a tax expert from that perspective.

Records are the key but when the Standard Deduction recently doubled it really put a crink in getting some extra deductions out of those losses. GL

Consult an expert for your area.

Not only can you deduct losses, but you can also deduct expenses relating to the activity of gambling, assuming you choose not to go with the standard deduction.

^only up to the maximum amount of your winnings.

Only if you file as a professional.

to wit:
This post was last updated 5+ years ago, so conceivably things have changed, but I don't think they have. With very limited exceptions, amateurs cannot deduct poker expenses.

This is still true IMO .. And if you are a Professional you 'can' take a loss and 'carry it forward' since you are treating your 'job' like a business .. and businesses are allowed to carry losses forward (for 3 years?) before they drop off the tax ledger.

And, consult an accountant or tax lawyer who has experience with professional gamblers (not just poker players) .. if you can. GL

No, anyone can claim gambling expenses.


https://turbotax.intuit.com/tax-tips...axes/L4lQ3IAWt

Unfortunately, based on multiple conversations with actual CPAs, TurboTax is incorrect in this instance.

Black Aces, ET al, are correct. Just asked my spouse who is both a practicing tax accountant and degen EV- slots gambler.

Well thanks for the replies. I gave it back lol, I really thought I was the next poker pro lol.... it was fun...

Technically I don't think you're off the hook. I believe you still have to report your gross winnings and can deduct gross losses if you itemize. This would be by "session."

Honestly I think you'd be an idiot though to do it the right way. IRS screws recreational gamblers. If you're net negative there's no evidence of unreported income because there wasn't any income. I'd be much more worried if I were depositing $5k into my bank account per month and reporting nothing.