For Gambling losses in previous years, can I claim them for this year tax filings?
Year 2010 - Loss $10,000
Year 2011 - Loss $15,000
Year 2012 - Win $50,000
While filing 2012 taxes, can I also deduct the LOSS of Year 2010 & 2011?
1 Answer from Attorneys
Gambling losses, unless gambling is your occupation, can only be deducted to the extent of winnings, and each year stands on its own; i. e., losses not used in one year cannot be carried forward to another year. Here is the IRS position: You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses on Form 1040, Schedule A, as a miscellaneous itemized deduction that is not subject to the 2% limit. A nonresident alien of the United States cannot deduct gambling losses on Schedule A of Form 1040NR.