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markdmuir
New Member

I received a letter from the IRS because of gambling income how do I adjust fror my losses

Need to know How I access my 2015 taxes to make an adjustment for gambling winnings and adjust for losses

1 Best answer

Accepted Solutions
DoninGA
Level 15

I received a letter from the IRS because of gambling income how do I adjust fror my losses

You would have to amend the 2015 return to report the gambling winnings and losses.  See this TurboTax support FAQ on amending a 2015 tax return originally completed using TurboTax - https://ttlc.intuit.com/questions/2589210-how-do-i-amend-change-or-correct-a-2015-return-in-turbotax

(Note - The FAQ for amending a 2015 online return points to tax year 2014.  The procedure is exactly the same for tax year 2015.  Just use 2015 where it states 2014)

You can only report gambling losses up to the amount of gambling winnings.  Gambling losses are not a one-for-one reduction for gambling winnings.  Gambling losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction.  Your total itemized deductions must be greater than the standard deduction for your filing status to have any tax benefit.

Using TurboTax to report gambling winnings and losses -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Less Common Income
  • On Gambling Winnings, click the start or update button

View solution in original post

1 Reply
DoninGA
Level 15

I received a letter from the IRS because of gambling income how do I adjust fror my losses

You would have to amend the 2015 return to report the gambling winnings and losses.  See this TurboTax support FAQ on amending a 2015 tax return originally completed using TurboTax - https://ttlc.intuit.com/questions/2589210-how-do-i-amend-change-or-correct-a-2015-return-in-turbotax

(Note - The FAQ for amending a 2015 online return points to tax year 2014.  The procedure is exactly the same for tax year 2015.  Just use 2015 where it states 2014)

You can only report gambling losses up to the amount of gambling winnings.  Gambling losses are not a one-for-one reduction for gambling winnings.  Gambling losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction.  Your total itemized deductions must be greater than the standard deduction for your filing status to have any tax benefit.

Using TurboTax to report gambling winnings and losses -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Less Common Income
  • On Gambling Winnings, click the start or update button

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