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Old 11-05-2016, 11:23 PM
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Gambling Winnings

I have a w2 for $4400 in gambling winnings for prior year. However, according the casino, I put in 100000 in slots but only received 92000 back giving me a 8000 loss. The 8000 loss plus the w2 winnings results in 3600 net loss. I must report the 4400 has other income on my 1040 but since I did not itemize that year I am told I have to pay tax on all the 4400 winnings though in reality i had a loss in the tax year. If I had itemized, my total deductions would have been around 2500 +4400 in losses = 6900 vs std deduction of 6200. I would only be able to add 4400 has gambling losses on schedule A instead?

Is there away around not paying any taxes since I indeed had a loss?



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Old 11-07-2016, 05:32 PM
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I have a w2 for $4400 in gambling winnings for prior year. =======>The Form W-2G reports income / withholdings related to gambling. Generally, you will receive a Form W-2G if you receive$1.2K or more in gambling winnings from bingo or slot machines;




However, according the casino, I put in 100000 in slots but only received 92000 back giving me a 8000 loss. The 8000 loss plus the w2 winnings results in 3600 net loss. I must report the 4400 has other income on my 1040 but since I did not itemize that year I am told I have to pay tax on all the 4400 winnings though in reality i had a loss in the tax year.=>>Correct as mentioned above;as the Form W-2G reports income / withholdings related to gambling. Your gambling winnings are generally subject to a flat 25% tax. However, UNLESS you claim the amount of loss on Sch A of 1040 you can not claim the loss but need to report the whole of $4.4K on 1040; the amount of losses you deduct cannot exceed the amount of gambling income you have reported on your return, in your case it is $4.4K.


If I had itemized, my total deductions would have been around 2500 +4400 in losses = 6900 vs std deduction of 6200. I would only be able to add 4400 has gambling losses on schedule A instead? ======>Correct as said, the amount of losses you deduct cannot exceed the amount of gambling income you have reported on your return , $4.4K. Excess gambling losses can not be carried over to next year Gambling losses in excess of gambling earnings cannot be carried forward or back to offset any other income. Thus, a taxpayer can only use losses in the year that they are incurred. -

Is there away around not paying any taxes since I indeed had a loss?===>No I do not think so;you can not claim tax on your gambling income that you pay to IRS on your return.



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