It includes cash winnings and the fair market value of prizes such as cars and trips. Federal Tax Laws on Mileage Reimbursement. Only gambling losses The IRS does not permit you to simply subtract your losses from your winnings and report your net profit or loss.william hill lotto checker TOOLBAR GAMBLING INTERNET PHARMACY If you itemize instead of taking the standard deduction, you can deduct gambling losses up to the amount of your winnings. For example, if. Although professional gamblers may still only deduct gambling losses to the extent of gambling winnings, the taxpayer may further deduct the. You may deduct gambling losses only if you itemize your deductions on Form , Schedule A (PDF), and kept a record of your winnings and.