What must you be able to report when claiming gambling losses?

When claiming gambling losses, it is essential to report both your gambling winnings and gambling losses on your tax return. The Internal Revenue Service (IRS) requires taxpayers to report their gambling winnings as income, which can include various forms of gambling such as lottery, casino games, and sports betting. To offset this income, you can deduct your gambling losses, but only to the extent of your winnings. This requirement ensures that there's a clear and accurate representation of your net gambling activity on your tax return.

Reporting only gambling losses without the corresponding winnings would not comply with IRS regulations, as they expect a complete picture of one's gambling activities. Therefore, accurately reporting both the amounts allows taxpayers to appropriately account for their net income while remaining in compliance with tax laws. This understanding is crucial for anyone involved in gambling, as it directly affects their taxable income.