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Index/Topics/Professional Gamblers Tax Rules

Professional Gamblers Tax Rules

Professional gamblers may report gambling as a business and use Schedule C to deduct business expenses, but face rigorous tests to qualify.

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Jan 9, 2026

What documentation is required to deduct gambling losses when reporting lottery income?

Tax law lets taxpayers deduct gambling losses only if they itemize and keep contemporaneous, supporting records; the IRS explicitly requires an “accurate diary or similar record” plus receipts, ticket...