skori
Level 2
Something I learned in my tax class there is a way to net.

Extra Gambling Deductions
Let’s use a live example to illustrate the valuable deductions allowed with sessions and an extra deduction for losses not allowed by sessions.

Session 1  spent 500 won 700      200 gain
session 2  spent 1000.  won 600    400 loss
session 3 spent 300 won 1000    700 gain
session 4  spent 1200 won 300    900 loss

John’s gambling sessions log.
The above sessions log is for a casual gambler who had four sessions throughout 2017. For calculating a session you can use your starting “money in” and netting your “money out” at the end of the session to determine your gain or loss for the session. Inside each session large wins could exist. For example, on February 2nd John may have won a $12,000 jackpot and received a W-2G, but by the end of the session he had only $700 left for a net $200 sessions gain.
John will report $900 of gains on his tax return regardless the gains inside a single session. Losses are not allowed against gains for between sessions.
The $900 gain will end up on Schedule 1 (Form 1040) and will be subject to tax and may affect other deductions and credits on the return. You can also deduct $900 of the additional losses on Schedule A if you itemize! (The $900 sessions gains on Form 1040 can be still be deducted from other losses on Schedule A.) The sessions will always break even (unlikely) or net out as a gain because losses are not allowed between sessions. But unused losses from sessions can be deducted on Schedule A against session gains.