When You Must Send Proof of Gambling Losses With Your Taxes

March 11, 2026 by Jean Lee Scherkey, EA

Do you have to send in proof attached to your tax returns about your gambling losses to offset the winnings?  

 -Paul, Nevada
 

Dear Paul,  

Thank you for your insightful question. I suspect many other taxpayers are sitting down to prepare and file their returns and are asking themselves the same question. While the IRS requires taxpayers to maintain a sufficient record of their gambling winnings and losses, these required records should not be attached and sent with your tax return.

If proof of winnings and losses is required, why are they not sent with my tax return?

If you were to include your gambling winning and loss records with your tax return, whether by mailing it the old fashioned way with an envelope and stamps, or by e-filing and then mailing Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return along with your gambling documents, there’s a good chance they may end up lost in a sea of other miscellaneous documents, similar to all of the toys and trinkets stranded on the Island of Misfit Toys. 

While the IRS requires taxpayers to keep good records of income and deductions, only a handful of these documents should be submitted with a taxpayer’s income tax return. For example, those who still file their tax returns by mail must attach Forms W-2 and 1099-R to Form 1040, page 1, if federal tax was withheld. (Those who e-file do not need to send in those documents.) However, there are certain documents the IRS requires to be submitted with a taxpayer’s return, whether filed by mail or electronically. Examples of common documents that are required to be submitted with a taxpayer’s individual return are:

• Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, or an equivalent written acknowledgement of the taxpayer’s vehicle donation to a qualified charity; 
• Form 8283, Noncash Charitable Contributions, Section A, if a statement or qualified appraisal is required, or Section B, “Donated Property” if an appraisal is required to be attached; and  
• Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or pages from a divorce decree or separation agreement that went into effect after 1984 and before 2009. 

Which records should I maintain to document my gambling wins and losses?

Although you should not submit the documentation that verifies your gambling losses with your return, these records need to be kept safe in the event the IRS or a state tax agency audits the gambling losses claimed on your tax return. (Remember, taxpayers also need to maintain records that prove their gambling income.) Generally, the IRS has 3 years from the date your return is filed to question or examine the information reported on your return. However, if a taxpayer omits income that exceeds 25% of the gross income on their return, the IRS has 6 years to audit the return. In cases of fraud or if the taxpayer never files a return, the IRS can audit the tax year for an indefinite period.

Luckily, the IRS provides guidelines on what it considers adequate documentation for verifying gambling income and losses. These guidelines include: 
 

1. An accurate gambling diary or similar record that is regularly maintained by the taxpayer and supplemented by documentation that verifies the information in the taxpayer’s gambling diary. At a minimum, the diary or record should include the following information:
    
   • Date and time of gambling or wagering activity, like bingo, keno, horse racing, table games, lotteries, or slot machines (Prizes from drawings, quiz shows, and contests are not considered gambling winnings; however, the income or the fair market value of the prizes received are considered other income and reported on Schedule 1, Additional Income and Adjustments to Income.); 
   • Name of the place where you gambled, including the address or location; 
   • Names of anyone also present with you when you gambled; and 
   • Amounts won or lost. 
2.  
   Why would I need to list the names of the people who went with me while I gambled?  
3.  
   It may seem like an intrusive question to ask, especially when you are reporting your gambling activities and not those of your friends on your tax return. Nonetheless, there is a good reason. While the IRS may ask your friend some clarification questions about your gambling activity if you are audited, the door swings both ways. You can ask your friend to provide a statement to verify the specifics of your gambling session.
4.  
   Here is an example. Peter goes to Las Vegas for a gambling weekend with his friend, Rick, in March of 2025. Peter was having such a good time that he forgot to log his gambling activities. The IRS audits Peter’s 2025 return to verify his gambling income and losses. Although he didn’t keep a diary, he produced his credit card statements, receipts from the hotel they stayed at and gambled, and ATM withdrawal receipts. Additionally, Rick provided a written statement about the weekend and the gambling activities Peter participated in. Despite not having a contemporaneous diary or other log, the IRS was satisfied that Peter reported all of his gambling wins and losses on his 2025 return.
    
2. Documents that can verify the gambling activity you engaged in, the date and location, what was wagered, and your wins and losses. These documents could include the following: 
    
   • Wagering tickets 
   • Forms W-2G 
   • ATM or other bank withdrawal receipts or statements 
   • Winning or payment slips provided by the establishment 
   • Hotel bills, airline tickets, or car rental receipts to verify you were at the casino or other establishment where you gambled.  
   • Statement from a friend or companion who went with you and was present when you engaged in gambling activities.  
      
3. While the documents above are more general in nature, depending on the type of games you participated in, you may have specific documentation that will support your wins and losses. For example, if you enjoy playing slot machines, keeping a record of each machine you play, along with the date and time of play, wins, and losses, is especially helpful. Below is a list of popular gambling activities and the specific documentation the IRS requests for each game: 
    
   • Keno: Copies of keno tickets purchased by the taxpayer and validated by the gambling establishment; 
   • Table games: 21 (Blackjack), Craps, Poker, Baccarat, Roulette, Wheel of Fortune, etc.—the number of the table at which the taxpayer was playing, and casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage; 
   • Bingo: A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets; 
   • Racing: Horse, Harness, Dog, etc.—a record of the races, entries, amounts of wagers, and amounts collected on winning tickets and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack; and 
   • Lotteries: A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements. 

Are the Win/Loss statements from my Player’s Card enough to prove my winnings and losses?

Players beware! On many occasions, the IRS disallowed a taxpayer’s gambling losses because the only verification they had was the information from their Player’s Club Card. The same has happened to taxpayers who have taken their cases to Tax Court. Your next question, I’m sure, is a resounding “Why are Player’s Club Cards not considered adequate documentation of gambling winnings and losses?”    

Player’s Card statements are generally maintained by the casino, not the taxpayer. Therefore, the records:

• Do not include enough detailed information that the IRS requires, as these records are generally summaries of the player’s activities.
   
• It is unlikely that a person using a Player’s Card uses it every time they gamble.
  
  Let’s consider Peter from our prior example. After spending a couple of hours at a hot Blackjack table where he used his Player’s Card, Peter felt his luck was cooling, so he decided to stretch and take a stroll around the floor. Walking past his favorite slot machine, Peter took a $50 bill from his wallet and sat down, hoping for lucky 7s. He believed in always using cold, hard cash when playing at his favorite slot machine. He thought using a Player’s Card to play the slots took away the allure of the game. While he didn’t win the jackpot, he won $75. Sensing his luck returned, Peter went back to playing Blackjack with his Player’s Card. At first, he started winning. Instead of calling it a night when his luck started souring, he kept playing and lost all he'd won and then some. Accepting his Blackjack defeat, Peter called it a night and started walking towards the door. That’s when he remembered he still had a $100 bill in his wallet. Not wanting it to go to waste, Peter used the $100 to play a few rounds of poker. Peter played poker until all he had left in his wallet was an echo from the lack of cash. However, Peter had no regrets, as he had a fun evening, kept his promise to his wife, and did not max out his credit cards.
   
• Player’s Cards can be used by other people. The IRS cannot be certain that only the taxpayer used the card.  

Thanks to the One Big Beautiful Bill Act of 2025, the gambling loss rules changed beginning in 2026. To learn more about these pivotal changes, review the informative blog written by my colleague, Veselina, titled “Can You Write Off Gambling Losses on Your Taxes?” 

Gambling can be a fickle friend. When the winning streak is plentiful, you want to hold on and enjoy the ride. But when the luck of the draw runs out, you’re left with the ashes of past winnings, hoping that your phoenix will come to take some of the sting of loss away. For taxpayers with gambling losses, your phoenix can be the detailed, contemporaneous gambling records you keep. Even though you might ultimately break even or lose all those winnings, you still have the possibility of reducing your tax liability by deducting your losses against your winnings. 


Wishing that luck is always at your side, and you have many happy returns,  

Jean Lee Scherkey, EA