An amateur gamblers wagering losses can be claimed only as a miscellaneous itemized deduction. Losses for the year cant be netted against winnings for the year with only the net figure reported as gross income on page 1 of form 1040. A taxpayer may deduct one-half of the self-employment tax as an above the line deduction. Takeaway 4 the professional versus amateur gambler status for tax purposes is a facts and circumstances determination. But its more than just fun and games -- gambling can also have serious tax implications. Here are the most important issues involving the federal tax treatment of an amateur gamblers winnings, losses and gambling-related expenses, along with information on a recent favorable development from the irs. Whether a gambler is an amateur or a professional for tax purposes is based on the facts and circumstances. 23 (1987), the supreme court established the professional gambler standard if ones gambling activity is pursued full time, in good faith, and with regularity, to the production of income for a livelihood, and is not a mere hobby, it is a trade or business. Having a strategy and knowing the rules will help you not only at the casino, but also when it comes to navigating the taxes on your winnings. Depending on your status as a professional gambler or amateur, the government allows you to take deductions for certain gambling business expenses and gambling losses, which can offset some or all of the tax you would otherwise have to pay. Gambler taxes when a taxpayer can claim gambling as a trade or business, the gambling winnings, losses and expenses are reported on schedule c. For all other taxpayers like amateur or casual gamblers, gambling winnings are reported as other income on line 21 of form 1040, and gambling losses are reported on line 28 of schedule a as. W2-gs are not requirefor winnings from table games such as blackjack, craps, pai gow, baccarat and roulette, regardless of the amount. The withholding rate for non-resident us is 30 and the tax rate for non-resident us is also 30. The irs categorizes gamblers into two types amateur gambler and professional gamblers. The category distinction is important because the two types of gamblers face different rules and reporting methods. For specific reporting rules for both amateur gamblers and professional gamblers, please follow the link below.