Enrolled Agent Exam [Part 1] 38, Gambling Losses Deduction

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Gambling losses are only deductible up to the amount of your reported gambling winnings. • For casual gamblers, losses are an itemized deduction on Schedule A and do not reduce Adjusted Gross Income (AGI). • Professional gamblers report on Schedule C, but a net gambling loss cannot offset other types of income. • Gross winnings must be reported as income; you cannot simply report the net result of winnings minus losses. • The IRS requires strict documentation to substantiate claimed losses, and without it, the deduction can be fully disallowed. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep