Question

1. Wagering losses are only allowed to be deducted to the extent of wagering winnings. True/False

2.  After 2017 miscellaneous itemized deductions are still generally deductible to the extent they exceed 2% of adjusted gross income. True/False

3. Cash contributions to public charities are deductible up to 60% of adjusted gross income. True/False

Answer 1

1.TRUE: Wagering losses are indeed tax deductible, but only to the extent of your winnings. This requires you to report all the money you win as taxable income on your return. However, the deduction for your losses is only available if you itemize your deductions.

The amount of gambling losses you can deduct can never exceed the winnings you report as income.

2. FALSE: You no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2% of adjusted gross income limitation.

3. FALSE: You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases