Hello, I have heard that you can use proof of lost wagers to offset taxes on gambling winnings. Here are the specifics: I won just under 18k on a hand of LIR Poker. To collect my winnings, I had to provide a SS number and address. I was told I would be sent a W-2. (This happened outside of Nevada. Not sure if it matters, but it might save time for people who were going to ask.) I expect the W-2 will arrive in January. It is my understanding that you can use proof of lost wagers to offset the federal income tax on your winnings. So, have any of you used losing sports bets to offset taxes? Also, can you use these sports wagers as a cheap way to save in the long run? For example, you bet both sides at -110. Risking 550 to win 500. One bet loses. The other wins. One bet will return you your wager plus your 500 in winnings. The other bet loses 550. Overall, you have lost $50. But, haven't you just gained a $500 deduction in the taxes you owe on your previous big wins? Any answers are greatly appreciated. Thanks!