# Gambling losses: the records you need to deduct them

[Home](/) / [Tax document checklists](/checklists/tax-documents) / Gambling winnings and losses

By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-10-30, updated 2026-10-30.

> **In brief:** Tax deductions for gambling losses go on Schedule A, so you must itemize, and you can never deduct more than the winnings you report. To claim them, keep a wagering diary plus proof such as Forms W-2G, casino win/loss statements, sportsbook histories and losing tickets.

## The checklist: Gambling win/loss file: one tax year, every venue and app

**Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026.

Start a new copy each January: 2025 losses offset winnings in full, 2026 losses count at 90%. Tick each line when the paper or export is in the folder, and write "n/a" next to games you did not play.

### Forms from payers

- [ ] Every Form W-2G received for the year: From each casino, track, lottery or sportsbook; check the withholding boxes
- [ ] Form 5754 copies for shared or collected wins: Your copy, plus the W-2G it produced
- [ ] Form 1042-S, for a nonresident with US winnings: Issued by the payer when tax was withheld from a nonresident

### Your own record of play

- [ ] Wagering diary for the year: Date, type of wager, place, people present, amount won or lost
- [ ] List of winnings that no form reported: Small jackpots, poker cashouts, office pools, prizes at fair value
- [ ] Travel costs to and from casinos or tracks: Receipts and dates; they count as part of the losses

### Casino and venue statements

- [ ] Win/loss statement from each casino player club: The calendar-year summary, requested from the casino
- [ ] Casino credit, marker and check-cashing records: Show where credit was issued and how much
- [ ] Slot play record by machine number: Machine number, date, time and winnings
- [ ] Table game record with table numbers: Date, table, buy-in and cash-out per session

### Online betting and money trail

- [ ] Yearly activity report from each sportsbook or casino app: Full year, all accounts, including closed ones
- [ ] Full transaction export where no summary exists: Deposits, wagers, payouts and withdrawals, not a screenshot
- [ ] Bank statements showing deposits to and withdrawals from betting accounts: Every month of the year, for each linked account
- [ ] Credit card statements with charges at venues or apps: Months with gambling charges or cash advances

### Tickets and slips

- [ ] Losing lottery, scratch and raffle tickets: Dated, kept with the purchase record
- [ ] Racing tickets and payment records from the track: Losing and unredeemed tickets with race dates
- [ ] Keno tickets validated by the casino: With the session date
- [ ] Bingo record of games, ticket cost and amounts won: Plus receipts from the hall

### The rest of Schedule A

- [ ] Form 1098 for mortgage interest: Helps show whether itemizing beats the standard deduction
- [ ] Property tax bill and charity receipts: Other itemized amounts for the same year
- [ ] Last year’s return: Shows whether you itemized and any winnings reported before

Download: [PDF](https://dokutrak.com/downloads/pseo-v2/f1-tax-document-checklists/gambling.pdf) · [Word](https://dokutrak.com/downloads/pseo-v2/f1-tax-document-checklists/gambling.docx) · [Excel tracker](https://dokutrak.com/downloads/pseo-v2/f1-tax-document-checklists/gambling.xlsx)

## How the deduction for gambling losses works

All gambling winnings are taxable, from a lottery prize to a sports bet or a slot jackpot ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). You report the full amount on Schedule 1, including winnings that never showed up on a form ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). You cannot net your losses against your wins and report only the difference ([IRS Publication 529](https://www.irs.gov/publications/p529)).

Losses come in on the other side of the return. You may deduct them only if you itemize on Schedule A and kept a record of your wins and losses ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). They go on line 16 as other itemized deductions, and only up to the winnings you reported ([Schedule A instructions](https://www.irs.gov/instructions/i1040sca)). So a bettor who takes the standard deduction pays tax on the winnings and gets no credit for the losses.

A **wagering loss** is the cost of a losing bet, plus costs tied to the gambling itself, such as travel to and from a casino ([IRS Publication 529](https://www.irs.gov/publications/p529)). Losing bingo, lottery and raffle tickets count too ([Schedule A instructions](https://www.irs.gov/instructions/i1040sca)).

## The 2026 change: only 90% of losses count

The 2025 law rewrote the loss rule. For tax years beginning after December 31, 2025, the deduction equals 90% of your wagering losses, and it is still capped at your gains for the year ([26 U.S.C. 165(d)](https://www.law.cornell.edu/uscode/text/26/165)). The rule also covers other costs of carrying on a wagering activity ([26 U.S.C. 165(d)](https://www.law.cornell.edu/uscode/text/26/165)), which reaches people who gamble as a business.

The IRS repeats the rule in its 2026 guidance: the Schedule A deduction is the lesser of 90% of your losses or your winnings ([IRS Publication 505 (2026)](https://www.irs.gov/publications/p505)). For example, a bettor with $10,000 won and $10,000 lost in 2026 can deduct $9,000, so $1,000 is taxed even though the year broke even ([26 U.S.C. 165(d)](https://www.law.cornell.edu/uscode/text/26/165)).

For a 2025 return, losses still offset winnings in full, up to the amount won ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). That difference means each year’s file must stay separate. Label every statement and export with the tax year before it goes to the preparer.

| Tax year | Loss you can deduct | Rule |
| --- | --- | --- |
| 2025 | Losses up to the winnings you report ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)) | Itemize on Schedule A |
| 2026 and later | 90% of losses, capped at the year’s gains ([26 U.S.C. 165(d)](https://www.law.cornell.edu/uscode/text/26/165)) | Itemize on Schedule A |
| Any year, standard deduction | None: winnings are taxed in full ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)) | Winnings still go on Schedule 1 |

## Form W-2G and the winnings that no form reports

**Form W-2G** is the statement a casino, track, lottery or sportsbook gives you for certain winnings, or for any win with federal tax withheld ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). For payments made in calendar year 2026, the W-2G instructions set the minimum reporting threshold at $2,000, adjusted for inflation in later years ([Form W-2G instructions](https://www.irs.gov/instructions/iw2g)). A W-2G for 2025 play was issued under the older lines, so check the year printed on each form. Below the line, a big night can leave no form at all.

A missing form does not change the tax. You still report every win ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). The W-2G also shows tax withheld, and it is worth chasing. For example, regular gambling withholding of 24% applies to some lottery and wagering pool wins over $5,000 ([Form W-2G instructions](https://www.irs.gov/instructions/iw2g)).

When a group shares a ticket, or the person who collects is not the real winner, the payer uses Form 5754 to issue a W-2G to each winner ([Form W-2G instructions](https://www.irs.gov/instructions/iw2g)). Keep your copy of that form with the W-2G it produced.

## Building the wagering diary

The IRS asks for an accurate diary or similar record, backed by receipts, tickets or statements that show both wins and losses ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). A diary written in March from memory is weak. Fill it in after each session, or rebuild it from the account histories the same week.

Your diary should hold at least the date and type of wager, the name and address of the place, the names of people with you, and the amount won or lost ([IRS Publication 529](https://www.irs.gov/publications/p529)). Online betting fits the same form: the app is the place, and the export carries the dates and amounts.

- Slot machines: the machine number and all winnings by date and time played ([IRS Publication 529](https://www.irs.gov/publications/p529)).
- Table games: the table number and casino credit data showing where credit was issued ([IRS Publication 529](https://www.irs.gov/publications/p529)).
- Keno: validated tickets, plus casino credit and check-cashing records ([IRS Publication 529](https://www.irs.gov/publications/p529)).
- Racing: the races, amounts bet, amounts collected on winners and amounts lost on losers ([IRS Publication 529](https://www.irs.gov/publications/p529)).
- Lotteries: ticket purchases, dates, winnings and losses, with unredeemed tickets kept ([IRS Publication 529](https://www.irs.gov/publications/p529)).

## Statements that back up the diary

Beyond the diary, you can prove wins and losses with Forms W-2G, wagering tickets, canceled checks, credit records, bank withdrawals and payment slips from the venue ([IRS Publication 529](https://www.irs.gov/publications/p529)). A **win/loss statement** is the yearly summary a casino’s player club sends on request. It supports your diary, but it only tracks play while your card was in the machine or at the table.

Sportsbooks and casino apps keep a full history of deposits, bets, payouts and withdrawals. Download the yearly activity report, or the full export when no summary exists. A partial screenshot does not show the whole year. Match the deposits and withdrawals to your bank statements, so the money trail runs both ways.

1. Request a win/loss statement from each casino where you used a player card.
2. Export the full year from each betting app, including closed accounts.
3. Pull bank and card statements that show deposits to and withdrawals from those accounts.
4. Gather every Form W-2G, and any Form 5754 you signed for shared wins.
5. Total wins and losses per venue, and send the totals with the source files.

## Nonresidents and the itemizing question

A nonresident alien with US gambling winnings files Form 1040-NR and Schedule NEC ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). In general, nonresident aliens who are not residents of Canada cannot deduct gambling losses ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)).

For a resident, losses only count when itemizing beats the standard amount, and the 2026 cut to the loss deduction makes that harder. A casual player rarely gets there on losses alone. So bring the mortgage interest, property tax and charity papers too, even though they have nothing to do with the casino. The [receipt guide](/documents/receipt) shows what a travel or hotel receipt for a casino trip should hold.

## Questions people ask

### Can I deduct gambling losses without itemizing?

No. You may deduct gambling losses only if you itemize on Schedule A, and only up to the gambling income you report ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)). With the standard deduction, the winnings are taxed and the losses are lost.

### What changes for gambling losses in 2026?

From the 2026 tax year, you deduct 90% of your wagering losses, and never more than your winnings ([IRS Publication 505 (2026)](https://www.irs.gov/publications/p505)). A 2025 return keeps the old rule of losses up to winnings ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)).

### How do I prove gambling losses to the IRS?

Keep a diary with the date, type of wager, place, people present and amounts won or lost ([IRS Publication 529](https://www.irs.gov/publications/p529)). Back it with Forms W-2G, tickets, credit records, bank withdrawals and statements from the venue ([IRS Publication 529](https://www.irs.gov/publications/p529)).

### Do I report winnings that were not on a Form W-2G?

Yes. You must report all gambling winnings on Schedule 1, including winnings not reported on a Form W-2G ([IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419)).

## Sources

- [IRS Topic no. 419](https://www.irs.gov/taxtopics/tc419): All winnings are reported on Schedule 1; losses are deductible only when itemizing and up to winnings; a diary and records are required; nonresident rules and the Canada exception.
- [26 U.S.C. 165(d)](https://www.law.cornell.edu/uscode/text/26/165): For tax years beginning after December 31, 2025, the wagering loss deduction is 90% of losses, allowed only to the extent of gains, and includes other costs of wagering.
- [IRS Publication 505 (2026)](https://www.irs.gov/publications/p505): Beginning in 2026, the gambling loss deduction on Schedule A is limited to the lesser of 90% of gambling losses or gambling winnings.
- [Form W-2G instructions](https://www.irs.gov/instructions/iw2g): The minimum W-2G threshold for payments made in 2026 is $2,000; 24% regular gambling withholding on certain wins over $5,000; Form 5754 for shared winnings.
- [IRS Publication 529](https://www.irs.gov/publications/p529): Winnings and losses are reported separately; losses include travel costs; what a diary should contain and the records for each type of game.
- [Schedule A instructions](https://www.irs.gov/instructions/i1040sca): Gambling losses, including nonwinning bingo, lottery and raffle tickets, go on line 16 only to the extent of winnings reported on Schedule 1.

## More on this topic

- [Receipt](/documents/receipt)
- [Bank statement](/documents/bank-statement)
- [Tax document checklist (all clients)](/blog/tax-document-checklist)
- [Document request email templates](/blog/document-request-email-templates)
- [How long to keep tax documents](/checklists/tax-documents/how-long-to-keep)

## About the author

Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul).

How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact).

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