The losses you deduct cannot exceed your income from all forms of gambling, including but not limited to horse racing, casinos, and raffles. You must itemize the deductions on the tax form 1040, obtainable from the IRS website. To file these deductions, you will need to keep an accurate record of your wins and losses, as well as any evidence of them, such as the tickets you bought. Playing the lottery is classed as gambling as far as the Internal Revenue Service (IRS) is concerned, which means that you are entitled to a tax deduction on any losses incurred. citizens are subject to an initial federal tax payment of 30 percent rather than 24 percent. If you win the jackpot you will be subject to the top federal tax rate of 37 percent. You may then be eligible for a refund or have to pay more tax when you file your returns, depending on your total income. A federal tax of 24 percent will be taken from all prizes above $5,000 (including the jackpot) before you receive your prize money.
