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Tax Tip - Deducting the Cost of Lottery Tickets02.25.13

If you were lucky enough to win money in a lottery, you can deduct the cost of your losing tickets for the year as an itemized deduction. The amount of the deduction is limited to your lottery winnings. You can also deduct losses from other types of gambling against your lottery winnings. If a husband and wife file a joint return, they can use their qualified combined losses to offset their combined winnings.