Your gambling losses are deductible up to the amount of your gambling winnings. All gambling winnings are reported as other income on line 21 of Form 1040. Your gambling losses, provided you can substantiate them, are deductible on Schedule A as a miscellaneous itemized deduction, not subject to the 2% adjusted gross income limitation (Reg. ยง1.165-10). In the case of a husband and wife making a joint return for the taxable year, the combined losses of the spouses from wagering transactions shall be allowed to the extent of the combined gains of the spouses from wagering transactions.