Hi

[Splatts86]

So he a quick run through on my situation . From 2013 up until 2023 I was doing my own thing and not on the books . So I wasn’t even filing or caring about taxes , so fast forward 2023 I was set to get my first return in over a decade for 4,100 and it was taken by irs and I was like ok that’s awful , so 2024 I set to get 2,629 and now that was taken so I get on and look at transcripts and it has that it went to 2014 a year that I didn’t have no income but payed and won a few nice jackpot as a casino . Here’s the thing I never filed taxes for 2014 so that all went towards earned income and the taxed it 25% so bc I never filed and but all the loses I lost that year they came up with 7000 and took my last 2 refunds . So I went through my filing cabinet and found my log book of all my loses and lost way more than I won that year . So now I’m going to get my w-2 and 1099-g fo that year and go file 2014 taxes and deduct my loses so that I didn’t owe anything really for 2014 . So my question is once I file then and log all my losses from that year and the irs has that tax return that should pretty much bring that down to nearly even . So would I be entitled 2 the last 2 years that they took my refunds after they see that I put all those winning back in the machine back in 2014 so technically I don’t owe them 7k ? I know you can’t get refunds after like 3 years and I’m ok with not getting money from 2014 , but I want that evened out . Will I get the last 2 years they took after fixing 2014 problem? I learned my lesson and don’t really want to hear how I was irresponsible for not filing . Any help would be greatly appreciated ! Thanks Steve 

[xmasbaby0]

You have a bigger mess than we can help you with in this user forum.   It seems you already know that refunds from any year earlier than 2021 have been forfeited, but you may not fully understand that if you owe tax due from any earlier year, no matter how long ago, it is owed with late filing penalties and interest.

Gambling losses do not just wipe out winnings dollar for dollar, although gamblers want to think that they do. Gambling winnings are taxable income, but losses are an itemized deduction, which have no effect on your tax due or refund unless your itemized deductions exceed your standard deduction.

You really need to seek local paid tax help to get this sorted out and become current with the IRS.  Do you realize that if you have not been paying income tax you are also risking your future Social Security and Medicare benefits?

[Vanessa A]

It depends.  You say you have been doing your own thing from 2013 through 2023. Did you have other winnings in 2018 through 2022?  Did you have any other income at all? If so, how much?  Do you have social security and if so, did your other income make your social security taxable?  There are a lot of variables that can affect the answer.

But, the basic answer is, if you owe for other years, then no, you would not get anything back, it would just get applied to the other years you owe. 

 If you file and end up owing nothing at all in back taxes, then it is possible that you would get your 2 garnished refunds back since they were "paid" in the last 2 years. 

[Splatts86]

Nothing I went off the grid and no all my transcripts up until 2023 have nothing owed or any issues it was just that one year . I hit a lottery in 2013 for 300,000 and received 225,000 and then for income tax time that year 2013 I got back 60,000 , so to the answer above it almost does go dollar for dollar with losses bc I lost it all and itemized it and all but 15,000 I got out of the 300,000 I won . I’m 35 at the time of all of this . Then going into 2014 I hit for like 30 k and didn’t work or have any other income from that point on and just went missing on a 9 year vacation only to file my taxes and have them taken . So I looked into my filing cabinets and have my log book along with losing lottery ticket from 2014 . So I have to obtain my w-2 from 2014 amend that tax get that squared up and then ask for my refund back from the last 2 years . Thank you Vanessa for all the help honestly 

[Splatts86]

The standard deduction is far below 30k in fully aware of that ! I won 300k 2013 . Received 225k and then 60 k at income tax time for itemizing all that I won in loses so 15k short of getting the whole 300,000 . Don’t does go pretty close as dollar to dollar consider the margin. And I know that if I owe a tax from 2014 it’s still owed , my question wasn’t that , my question was if I amend and file 2014 with my log book and that self adjusts its self or already being those number a lot closer then would I get my refund from this year and last year which total 6,700 

[Vanessa A]

"my question was if I amend and file 2014 with my log book and that self adjusts its self or already being those number a lot closer then would I get my refund from this year and last year which total 6,700 "

If you do NOT owe ANYTHING for the other years and they took too much then YES, you would likely get a refund of what they took from you the last 2 years since it is within the 2 year window. Basically IF YOU OVERPAID AN AMOUNT IN THE LAST TWO YEARS from them withholding your refund, THEN THE OVERPAID AMOUNT WOULD BE REFUNDED. 

But again, it does depends.  It sounds like you will still have something owed from 2014 along with interest and penalties which over 10 years can really accumulate. So it is very possible that you will not get it all back.  

One note, if you never filed, it would not be an amendment, you should have received a letter from the IRS stating what you were supposed to do if you did not agree with their calculations.  So if you never received the letter and you haven't done so yet, you should contact the IRS to see how they want you to handle this.  They may not want you to amend, they may want you to file an original return since you did not do so to start with.