Capital gains are profits from the sale of assets as bonds or real estate. See Section 16.4.3 Self-Employment Income. Gambling losses cannot be used to offset other types of income. Count gambling winnings that are regular and predictable as income. I was not eligible to receive it until August of 2012. Do I have to report gambling winnings to Social Security Disability I applied for Disability when I lost my job in March 2012. For instance, if you lose $3,000 on one trip to the casino and win $2,100 on another trip in the same year, you can write off $2,100 in losses to offset the $2,100 in winnings, leaving you with a total of $900 of taxable gambling income.

The IRS will only let you deduct losses to the extent that you win. Nonresidents whose gambling winnings are connected to a trade or business may deduct gambling losses to the extent of winnings, however, under Sec. The law is not as kind to nonresidents: While nonresidents must also include U.S.-source gambling winnings as income, they cannot deduct gambling losses against those winnings.

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