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Always save receipts and document your mileage and expenses. Failing to report winnings or claiming big gambling losses. Gambling winnings are considered taxable income, which means that you must report them as such for purposes of both federal and state income. If you claim the standard deduction, then you can’t reduce your tax by your gambling losses. Keeping track of your winnings and losses. Deduct their gambling losses. Form w-2g, statement for certain gambling winnings, for. Your gambling losses are limited to the amount of your winnings. Many people fail to report this correctly and are audited. They even receive reports on gambling or lottery winnings. They have other ways of tracking down income, too, so be sure to account for every Completing the CAPTCHA proves you are a human and gives you temporary access to the web property, irs audit gambling winnings.
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