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The prescribed method for handling gambling income and losses increases AGI (even when the taxable revenue remains unchanged). Finally, gambling losses can, in certain circumstances, trigger the dreaded Different Minimum Tax (AMT). And gambling losses aren’t deductible within the AMT. In such a situation, your gambling losses are presumed to be part of your commonplace deduction. The wins go as a part of Other Revenue (line 21), while the losses are an itemizable deduction (Schedule A) not topic to the 2% AGI limitation on itemized deductions. Second, many gadgets on the tax return are tied to Adjusted Gross Revenue (AGI). Since we are speaking about the upcoming episode, it can be fairly fair to acquaint you with the tidbits of it.