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It is true that gambling losses can be deducted from an individual's taxes. However, for this to happen the individual must have an up-to-date track record of wins and losses, the dates, type of activity, the addresses of the casinos, canceled bets and receipts(this is for brick and mortar casinos). In my case, I have been gambling exclusively at online casinos which have incorporated account statement and tracking databases for gamblers. If needed, I can request for my yearly statement, which shows how much bet I have placed in that year, the wins, and losses for the year. For experienced people, will this statement alone be enough to prove my gambling loses for tax deduction purposes?

According to what I have heard before in countries that collect tax from gamblers, the authorities do not collected tax if you have loss as the net profit. If you your net profit is positive, you will be taxed.

On some gambling sites, you can check for your betting history, the total profit and loss can be seen, but this may differ from one betting site to another.

What that matter is your total profit that month or year.

From my experience with tax laws, no country will tax you for gambling losses, they can only do that if you have an aggregate gambling gain over the tax period.

And the issue is that it's not easy for countries to tax their citizens the way you have explained, though it's viable for you to prove you gained or lost. However, some would still evade tax through that as there are many schemes through which they do this, especially when they could gamble online, and with crypto.

This is why a country that wants to tax its citizens always has arrangements with the gambling company, they might tax your ticket directly or have the record they will duplicate for the government in order to know how to tax you. But one must be living in their country for the latter to be effective.

Either way, it depends on the country, but you shouldn't be taxed if you are not gaining.

I don't know about this and it will be good if this is still applicable here in our country. Since you are playing online I am sure that you have your gambling history, better if you can convert it in pdf so that it would be presentable since I don't but last time I asked my accountant to bookkeel for me she asked if I can compile it and make everything in pdf. Hmm since it is online, make sure that it is acceptable by your tax bureau as well.

Which country are you talking about? I don't know about such gambling tax deduction in the US tax system.
The tax system in my country has imposed a 15% income tax on all registered gambling businesses(in addition to the 10% corporate profit tax). There isn't any tax deduction for gambling loss in my country, AFAIK. Having such tax deduction seems immoral and ridiculous. The gamblers would be incentivized to gamble more, because their loss will be deducted from their taxes. I don't know about any country in the world, whose tax system stimulates the gamblers to gamble more. :(

I want to ask the same because I have never heard of this in my entire life. Just now.
Maybe countries who really look deeper at their countrymen's taxes will do this but not in our country. I have a feeling though that maybe the rich people are being surveilled by this kind of activity so that there will be proof if ever they want to add it to their tax exemption records.
I've heard about institutions like charities that will help cut some of the individual tax but in terms of gambling, this is new to me. I thought that when you gamble you just risk your money, you lose, and voila no one cares. :D

Generally, yes, you'll be able to  deduct your gambling losses but only to the extent of your winnings and you have to file your taxable income in order to do it. Anyone who files their income tax return faithfully has the right for this deduction.

I agree. Every territory has their own tax rates when it comes to winnings. In our country, winnings are fully taxable and subject to 20% final tax in excess of 10,000. But for other countries, if you really do want to get the privilege of claiming itemized deductions in your taxes, better to report your income rightfully as well and keep your winnings history with you. Also consider that there are some policies where foreigners are not allowed to deduct their losses in their taxable income.

Rich people, especially businessmen, take advantage of these kinds of tax laws. In order to reduce the tax that they have to pay, most of the time they report part of their income and claim any deductions that they have the right to. They usually hire people who can legally help them with their taxes and do tax avoidance.

I don't think there are taxes on net loss from gambling/trading. Even in my country they have applied taxes on income from crypto.
So this means if there is no income then there are no taxes. So yes, a solid track record of bet history should be enough evidence to disclose the losses.
Besides that, if there is no profit then how would they tax you without knowing the amount of profits you have made.

Gambling losses can deduct taxation but it's just for gross profit you're make through gamble, not the net profit.

Let's say your beginning bankroll is $500, you're keep gambling and now your bankroll become $750, which mean you're make $250 and this is the net profit you make through gamble. You can actually just include this $250 in your transaction report, but you're not allowed to include your gambling losses.

You can include the losses but you need to count it yourself based on your gambling history. Your gross profit is $4,000 and your gambling losses is $3,750.

At the end it's same your profit is $250.

Maybe that's enough for the tax office because you can attach the data when you pay taxes and get a deduction. But for more details, you can ask the local tax office for an explanation. Besides that, we are in different places, so there must be differences in the terms and conditions for paying taxes.

But other countries only need to include payroll and other assets in their tax reports. For the gambling report, I think it will depend on each tax office.

Well most users in this forum aren't tax experts, so we will not know which user is right and which user is wrong here, because some users only use their assumption and guess. Each country might be different to calculate the gambling tax, maybe there's a user who live in country where gambling is banned, obviously they will not report their gambling profit lol.

It's better to ask or consult with the tax expert in your countries, just be honest with them

I personally think it's enough but you have to ask fellow gamblers from your country.

You already mentioned brick and mortar but is Online Gambling a legal activity in your country? You may not be able to claim at all if it's declared illegal.

If it's legal then the next thing you also need to know is do they recognize online casinos that are not licensed or registered in your country.

Never heard of such thing which seems like an insurance. Gambling is gambling, no one is liable for your losses but yourself alone. Taxes on the other hand is more likely tobe done on your winnings and also if your gambling platform is registered under government agencies. But if it is in cryptocurrency industry, this would be impossible. It is often a win or lose situation for gamblers.
This sounds more of an insurance than taxation alone. Why would they tax you if you already lost? that would be twice your loss if that's the case. Even with other fields such as businesses, taxes are only made with gains unless it is a registered establishment, which is what I am pointing above.

Such a cruel government you must have that you get to pay tax whenever you lose. But then I also thought maybe this law could be a good penalty for the people in countries where gambling is illegal.

If you go bankrupt due to your gambling then there is no way you can pay your tax. Just get inside the cell. I wonder if it had happened to someone before.

AFAIK, official annual statement is sufficient for the IRS to support your tax since that is what’s being use on exchange when user is paying taxes for their trading. What I don’t know if losses is taxable too since each state or country varies law in regards taxation. It sounds unfair to tax loss but it’s too possible because some country charge tax on activity that can harm someone life to help the people avoid it and use tax to scare people from using it. In my country, we have sin tax law which gives extra tax on goods or luxury that can harm society.

Gambling tax policy varies depending on where you are living, in some countries you will only get the winning rewards after the deduction of taxes and for loss you need to bear it, while others have different so consulting the financial advisor will be the preferable choice. But since you have the statement and your country allows tax deduction based on your net profits then the statement from the casino itself enough.

In the EU we have similar problems as tax offices accept your statements and you accept that if proven wrong you can be fined. It's very simple. The tax office will not ask 90% of taxpayers to further prove their statement. It happens usually when the discrepancies are very big, or you're operating on large sums of money. From time to time they'll ask you for something at random, just to show you they care ;) but most of the time they won't.

None of my friends and family were ever asked to clarify their statements, so if you aren't claiming a $100k loss, they probably won't even ask for details.

You should really be asking a professional accountant or tax expert, rather than relying on random opinions from an internet forum. Besides that, nobody here can give you a proper answer based on this information alone, because it will heavily depend on what country/state/region that you are in. While it would seem like adequate proof, different jurisdictions can have different standards and may not accept receipts from other places if those gambling companies are not "friendly" towards them. If you have been successful at gambling, you should re-invest some of that money into proper financial advice, otherwise you could end up in a lot of trouble and potentially pay fines far outweighing your gains.

It's really amazing that the government sees tax like business. Infact they tax law mentioned a proffesion called proffesional gambling. It's true gamblers can deduct their losses from their tax business expenses if their records are comprehensive and up-to-date. I am not aware of these laws because I have never really considered this privilege.

But this law might not be universal because I had to go through many tax websites and documents in my country and I didn't find such provision. I think it is applicable mostly in developed nations. But I have decided to start keeping a comprehensive record of all my gambling activities because such laws might be applied in future.

First time I've ever heard of countries counting your gambling losses off of tax deduction honestly, coz as far as I know they don't touch those things, except when maybe you've earned a net profit in your YTD statement which in that case you'll be bombarded by emails and letters from your tax collector to include those wins and declare them in your taxes. Exactly. First time I've ever heard of such a ridiculous law. I mean to be fair most casinos be it privatized or government-sanctioned still puts money to the community chest by means of taxes, but never did it strike me that a country so greedy/so lenient that they'd go so far as to charge you taxes for gambling lmao.

I don't know but first you need to be in a country which supports that and as far as I know there are not many such friendly countries to gamblers  ;D.If you truly live in such a country then go ahead and request your statistics from the online casinos where you have played,most well known ones can send you an instant email with all your time statistics like you say,wagered,win,lost and ROI,so if you are in huge lost amount then this should help you to deduct some amount from your taxes.The only problem though is if you have played in crypto casinos,no countries as far as I know allow this while a few countries allow this for FIAT gambling.

It is obvious that the experience of people and the tax reality itself differs from country to country. The easiest way is to consult with a local lawyer and find out the prospects for such a tax deduction. But even if his verdict is negative, then you can do it through the court - after all, if you think that the law is on your side, then why not.

I have no idea of such about taxes and gambling. It's best to consult your accountant to know if this is possible on your country.

These professionals know what's best for those that are asking for that situation if their client is a gambler and want to have some deduction from their taxes.

Who knows if it's possible and you're in that actual situation.

I think it all depends on the country. In our country, they will always require and would ask for proof to support your statement. They always make sure that you have a valid reason to support your claims. However, there are still lots of people here especially gamblers that don't pay their taxes and the government can't track them. Even some huge personalities fail to pay their tax responsibilities. They don't have the guts and motivation to pay for it to because of our corrupt government.

Seriously, you came up to a point that you are concerned about your gambling activity being associated with a tax?

I'm curious, where are you from? Does your country really have that law about gambling in general? I mean, as far as my knowledge is concerned, gambling owners are the ones who should face tax obligations and their customers have nothing to do with it regardless if they win or lose, or have the obligatory means to pay tax. Every winning is tax-free in most cases and we are not talking about a decent win here. So in your country, there's a certain tier or what?

I found it not comfortable to show my yearly gambling statement for tax purposes. I think it's already considered as violating my privacy.

I believe that the account statement and other related documents that can be provided on demand by the online casino to their users have relevance for this sort of situations, it will be one of the reasons why these records are kept.

In terms of if it will be enough to prove gambling loses for tax deduction depends on the country and the officials who are in charge of making the decision.

 If it is a country that regards and recognises online gambling and the casino you play with, the document will have relevance. If the officials are genuine also, they will not want you paying extra tax when you clearly have encountered losses from what the documents you have presented provided they are legit.

Im with this suggestion, im aint saying that getting some advise on this forum is bad but it would be better if you do ask this way on a professional or to those who are handling these kind of stuffs on your local so that

you would be able to make yourself that fully aware on what are the things that must be processed or what are the things that you shouldnt bother. In speaking about taxes on overall losses then i dont believe on that
and just like the rest been saying that if you are on winning or simply talks about net profit then for sure you would be taxed.I cant really be sure if this one would be
applied overall in losses too but its unlikely i guess im not sure.

here on the forum each person has their country, with that each person will tell you based on the law of their country, so this will not be of great help for your case, I suggest that you ask this question to people in your country who are connected in the area of tax collection, that way you will know whether or not you should pay tax, for example in my case in my country I still haven't seen a law that makes people pay tax for playing in online casinos, so I don't think that exists law in my country, and even when the person plays the lottery in my country, the person does not pay tax when he wins the lottery, but the person pays tax when he buys the lottery ticket, if my memory serves me correctly, it is 17%, so the lottery guys calculate lottery ticket price including 17% tax amount

when the person withdraws money to the bank account, nothing is deducted when the money arrives in the account, but when the person withdraws money from the bank account, they charge a bank fee and tax of less than 1%, that is, for least for now in my country they don't charge tax for games of chance when the person wins, they only charge when the person buys the lottery ticket and other games

It suffices IMO, although they might contest that it can easily be forged or can be faked and you have to be ready for that. For tax-related things, IIRC they won't really tax you if you report this money as losses and you back it up with sufficient proof. I could be wrong though but this is how it's done here in my country. As for other people's suggestions, it's true that it's not advisable to seek for advice on this forum regarding these matters. Better seek help from a lawyer or from those working in your tax department directly to get clear answers.

exactly! most forum users don't know how your country is handling such tax matters. better directly go to your tax department and inquire their requirements, proofs needed and all. it is always best to find solution by getting directly to the department involved.
people will always give their opinions but the actuality of your situation may be different. so why not head to your nearest tax department and ask. this will give you straightforward answer to your question.

Many of us don't know what tax laws apply in our country. As far as I know, taxes are only levied on people who are earning, and if their earnings are not large, they don't have to pay taxes but may just report it. And the tax office won't ask you whether you spend a fraction of your money on gambling or just save it. But maybe the law in your country is different from that in other countries, so your government, through the tax office, requires you to record everything, including your gambling activities.

If you can afford to pay a tax consultant, I suggest you hire him and let him do the work because we don't know exactly what needs to be recorded in someone's tax report unless you go to the tax office and ask for it directly. But I don't know. I also don't understand the details of this tax, and in my opinion, taxes are about a person's obligation to pay a small portion of his income to the state.

I guess by just our opinions regarding losses and taxes, I don't think that it will be counted to be taxable. There's no way that you'll get to pay taxes with something that you don't have anymore.

But anyway, those are just our opinions and it's really best for him to consult an accountant as they're the professionals regarding situations about taxation.

In my country, you can get a tax deduction (payroll tax refund) if you provide documents that you spent money on real estate, education or medical treatment. There are certain restrictions (for real estate, you can only get a deduction once in a lifetime), but this system works. I'm sure it works the same way in most countries.
Gambling is also obvious - if I pay taxes when I win, then why can't I get a tax refund when I lose?

In which country is this possible?
basically I could simply bet some money, if I win I pay taxes with the profit, if I lose I don't pay taxes!
it's fantastic please ;D tell me where it can be done and I'll move right away!
plus if you are able to collect some receipts from bookmakers (in some places there are hundreds ...daily) well it become easy to have such kind of statements .

How this one would be fantastic considering that they would really be taxing out even with those lose bets? which means it would be costing you more.So i don really see this to be advantageous on someone.
The common concept on here is that people dont really get taxed about losses but rather they would really be taxed on something that they do win specially if this one talks on bigger numbers.
Just like the rest been telling around that it is unlikely or cant really be possible for a place to have such tax rule considering that it is really that too much on counting up
things which arent even yours. lol

I believe yes is the answer, i mean what other ways do you hope to use to prove your gambling wins and loses if not through the statement of account issued by the online casinos where you gamble.

Though the issue of taxing is taken seriously in well developed countries, in my country, I've never had any course to request for such data since taxing isn't much of a problem here, the government really don't care, they are more busy looking for means to siphon money into their private wallets, but if at all, I have any course to have to pay my tax from my gambling gains, I believe the statement of account from the online casino where I play is just enough.

I personally have never and would never claim gambling losses on my taxes. Besides it likely opening you up to further investigation that could lead to costly and stressful audits, I personally don’t believe it’s the government’s job to reimburse me for losses as a result of dumb decisions. Similarly to why I don’t claim crypto losses on my taxes. It just seems like personal responsibility to me.

Yes, because just like a business, this is where they earn money. If on business there are negotiations that can happen, this post clearly shows that it is also possible in taxations. They negotiate people if where they are comfortable at only for those people to continue paying their taxes but if this was possible that tax can be deducted via a gambling losses, I am afraid that many people will gamble more (intentionally). They won't be scared now to lose big because they know that this had a great effect. Other than tax deductions, they can also get a good amount of money in the form of casino bonuses. If they are lucky, they can also win huge in an instant.

The government will make further investigations on what you are claiming so yeah, this can result for the audit just for them to check if you are really qualified to claim that losses. Better to consult an accountant if you have one who are handling your filling, for sure they can advise you on what to do especially if you lose a lot of money and can’t afford to pay any taxes anymore.

That's a good argument there but if they tax gambling winnings then it is only natural and fair to everyone that they also allow gambling losses as tax deductibles. Governments have different rules on this but I agree on the audit part. Recordkeeping could also be a bother.

US is one of them. You can only deduct up to the amount of your winnings and you must have a complete record plus proofs if you want to claim them https://www.irs.gov/taxtopics/tc419

You have to review the tax rules in your country if declaring such losses from gambling is valid, or else better not to declare it because they might ask for more details especially for the source of money and bigger problem might occur if you can't provide any proof for your income. Declaring your income for tax purposes seems to be more stressful, its really good to ask for legal advise from the accounting firm, in my country we have a lot of services like this that actually work for small business, I just don't know if they also handle gambling income since its hard to get proof from this.

Yes, he has to seek for informations with the local government's body from his country, because rules and guidelines are different for each territory. Only those public agents will be able to provide accurate informations on how he should conduct his tax deduction process when gambling online at crypto casinos.

However, since it's a bureaucratic process which demands the hiring of an accounting professional, what also makes it expensive, it's better to avoid it maximum as possible, otherwise it might be more expensive to ask for tax deduction, after all, than just leaving it alone.

In my opinion, the tax deduction is also logical because it, in a sense, corrects double taxation. If you look at the situation from the outside, it turns out that taxes go either from the casino or from the player - wherever the money goes, part of it still goes to taxes. It's highly unfair if a player can't get a tax deduction.

I'm not sure if it's the same in OP's country.

That ruling is basically one of the best taxation for a country, as an individual, you get to enjoy the benefits of tax and that's should encourage everyone to pay the taxes on time and that should be deducted automatically.

I agree that system works and people won't be too lazy to file for their income taxes and anything that's being taxable.

I have never seen or heard such countries that imposed taxes even in times when you are at loss. Maybe it could be true for some who are really making it huge in gambling, but for those who are at loss, it will be additional loss for them if ever the government will still taxed them. Like in lottery, although taxes maybe included already in our tickets or bets, but most especially if you hit the jackpot prize, you will never receive the full winning amount indicated in the screen as they will still deduct quite big amount for the tax.