Originally Posted by dk8721
#1;I live in Texas where we have v-sweeps machine or called donation machines. These gaming machines do give a cash payout which could be loaded on a "credit" card/ player card and be pulled out in sums up to $500. My question is can this redeemed money be put on my 1040 as gambling income and be offset by gambling loss AND the extra that is put back in the machine as a donation be put on my 1040 Itemized deductions as a donation to a charity/veterans.
2;I have reports from the v-sweeps organization for how much I donated or put cash in the machine and how much I pulled out. My donations really offset way more than I won or redeemed from the machines.
Any help would be greatly appreciated.
#1;for deducting gambling losses , you must be able to itemize deductions to deduct anything. If you cannot itemize your deductions, then none of your gambling losses will be deductible.If you are able to itemize deductions, then your winnings total more needs to be more than your losses, then all of your losses will count toward a deduction. If your losses are greater than your winnings, then only the amount of losses equal to your winnings will count. You will need to itemize your tax deductions on Sch A of 1040 in order to claim any charity.
#2;as mentoned above