Yes, you can deduct gambling losses against your lottery winnings, but only if you itemize your deductions. Keep in mind that you can’t deduct more than your gambling winnings. So, if you’ve lost $1,500 but only won $1,000, you can only deduct $1,000 in gambling losses on Schedule A, Itemized Deductions.

If you plan to deduct gambling losses against your lottery winnings (or any other kind of gambling winnings), make sure that you keep detailed records of your wins and losses. This may include lottery tickets, receipts, statements, or any other documentation you have.

Deducting gambling losses from lottery winnings can be confusing. Don’t file alone, and don’t trust your tax prep to just anyone. Work with a local Tax Pro backed by national support and great guarantees. Book your appointment today.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 08, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.