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Oklahoma city — after the oklahoma legislature's covid-19 centric session, a bill that would have allowed state income tax deductions for gambling losses appears dead. House bill 2667, authored by state rep. Kevin wallace, r-wellston, would have allowed the exclusion of gambling losses under oklahoma's $17,000 cap on itemized deductions. Since you will need to know how to prove gambling losses, you will need the proper paperwork. The payer must issue a form w-2g, certain gambling winnings, that is if you receive, as the irs explains, “certain gambling winnings or have any gambling winnings subject to federal income tax withholding. You’re allowed to deduct losses only up to the amount of the gambling income you claimed. So if you won $2000 but lost $5,000, your itemized deduction is limited to $2,000. So if you won $2000 but lost $5,000, your itemized deduction is limited to $2,000. Amount of your gambling winnings and losses. Any information provided to you on a form w-2g. The tool is designed for taxpayers who were u. Citizens or resident aliens for the entire tax year for which they're inquiring. If married, the spouse must also have been a u. Citizen or resident alien for the entire tax year. Yes, scratch off tickets can count as gambling losses – but there is a catch. First, you cannot deduct them without claiming any winnings. For tax purposes, you can only deduct losses up to the amount of your winnings. Secondly, they are part of your itemized deductions. For example, if you lost $10,000 and won $8,000 during various trips to casinos, you can deduct $8,000 of your losses, which is the amount up to your gain. What about the remaining $2,000 of unclaimed losses? it simply disappears. You can't use it to offset your gambling gains in other years
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