The Perfect Debt To Have During Tax Season

Gambling Losses

If you are eligible to itemize deductions, you may take advantage of any losses you incurred when gambling. The extent of your winnings determines how much of a loss you can claim on your taxes. Be sure to report winnings as well, because the government considers anything you win to be taxable income. Properly reporting the winnings will help you to take all of the losses off of your taxes when the time comes.

Many people colloquially consider losses in the stock market to be gambling losses, and the government agrees to an extent. You can take a certain amount of losses away from your taxable income if stocks you sold lost money during the tax year. There is a limit on how much you can take each year, so make sure you are aware of the current tax law when it comes to stocks and other securities.

As with any financial advice, make sure you run any idea you have by a trusted financial adviser, who should have a specialty in tax accounting and tax law. Remember you are always responsible to the government for any taxes you owe regardless of the advice you receive. Always take the time to write down all of your tax information so you have a paper trail officials can easily follow.