Under the proposed rule, the IRS would not challenge a taxpayer’s use of the. IRS issues proposed safe harbor to determine gambling winnings In Notice 2015-21, the IRS has stated their intent to issue a Revenue Procedure that would provide an optional safe harbor for taxpayers to determine a wagering gain or loss for certain slot machine play. Didn't have a good year at the gambling tables? Finally, you need to complete the first part of your form 1040 to determine your adjusted gross income, because only gambling losses to the extent of gambling winnings that exceed 2 percent of your adjusted gross income are deductible. How to Deduct Gambling Losses on Your Taxes. Gambling wins are reported on the front page of Form 1040 for tax years 2017 and prior. Gambling Wins and Losses on a Tax Return. Before we explore strategies for deducting gambling losses we need to review the rules as they stand.
