Final answer:
Gambling losses are reported as miscellaneous itemized deductions without being subject to the AGI floor limitation, and losses can be deducted up to the amount of gambling winnings.
Step-by-step explanation:
The statement is true: Gambling losses can indeed be reported as miscellaneous itemized deductions on a tax return. However, these gambling losses are not subject to the 2% Adjusted Gross Income (AGI) floor limitation that applies to certain other miscellaneous deductions. This means that you can deduct gambling losses up to the amount of your gambling winnings without them being limited by your AGI. It's important to remember that documentation such as receipts, tickets, or other records should be kept to support the amount of losses claimed.