Losses and the standard deduction.
Educational notes for people who bet on sports or trade event contracts. This page does not tell you what to file, which method to use, or what you owe.
Source: Publication 529 (12/2020), Miscellaneous Deductions. Header still Revised: December 2020. Page last reviewed 30-Apr-2026 on the live IRS page cited for this draft.
Publication 529 says records should show winnings separately from losses, and that you cannot reduce winnings by losses and report only the difference.
A gambling-loss deduction and the standard deduction are different lines. The homepage example shows two taxable-income readings and holds tax due.
- Winnings stay on their own line in the record.
- Losses stay on their own line in the record.
- This page does not choose itemizing or the standard deduction for you.
This page does not tell you which reading to use, and it does not print an owe dollar.
Educational notes, not tax advice.