Which of the following statements about the tax consequences of gambling is true?

Question

Quizplus · Accepted Answer

Gambling winnings are taxable and must be reported as income on the taxpayer's tax return. Gambling losses can be deducted as an itemized deduction, but only up to the amount of gambling winnings. This means that if the taxpayer has $5,000 in gambling winnings and $7,000 in gambling losses, they can only deduct $5,000 of those losses on their tax return. Gambling losses cannot be taken as an above-the-line deduction.

Which of the Following Statements About the Tax Consequences of Gambling