Yes, you can use gambling sessions to adjust your W-2G income. According to the proposed Notice 2015-21 revenue procedure, a taxpayer determines a wagering gain or loss from electronically tracked slot machine play at the end of a single session of play. If the total dollar amount of payouts from electronically tracked slot machine play during that session exceeds the total dollar amount of wagers placed by the taxpayer on electronically tracked slot machine play during that session, the taxpayer recognizes a wagering gain. Conversely, if the total dollar amount of wagers placed by the taxpayer exceeds the total dollar amount of payouts, the taxpayer recognizes a wagering loss.
However, it's important to note that a taxpayer may not reduce their gambling winnings by their gambling losses and report the difference. Instead, gambling winnings are reported in full as income and the losses (subject to limitation) are deducted on Schedule A. Therefore, if a taxpayer does not itemize, they are unable to deduct gambling losses.
