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Bronson won $1,000 from a lottery ticket this year. He also lost $2,000 playing poker at a casino. Assume Bronson uses the standard deduction. Which

Bronson won $1,000 from a lottery ticket this year. He also lost $2,000 playing poker at a casino. Assume Bronson uses the standard deduction. Which of the following is true?

Bronson will include the $1,000 winnings in his taxable income, but he will not be able to deduct any of the $2,000 losses.

Bronson will include the $1,000 winnings in his gross income and he will only be able to deduct $1,000 of his losses.

Bronson will include the $1,000 winnings in his gross income and he will be able to fully deduct the $2,000 losses.

Neither the winnings nor the losses will be reported on Bronson's federal income tax return.

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