Frank Fox won $10,000 in a state lottery. He also lost $3,000 at the horse races. On his income tax return he should report:
A) $10,000 gross income
B) $7,000 gross income
C) $10,000 gross income and $3,000 deduction for adjusted gross income
D) $10,000 gross income and $3,000 itemized deduction
E) None of the above

Question

Quizplus · Accepted Answer

Gambling winnings are reported as gross income and gambling losses are deductible to the extent of winnings as itemized deductions.

Frank Fox Won $10,000 in a State Lottery