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westfreddy
New Member

Why did my income not reduce when my gamblimg losses were as much as the winnings

 
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VolvoGirl
Level 15

Why did my income not reduce when my gamblimg losses were as much as the winnings

Gambling Losses are an itemized deduction and you need to itemize on schedule A to use them.  So if your Standard Deduction is more they won't be used.   Even if you itemize deductions and use the losses, the increase in your AGI from the income may affect and reduce some credits on your return like the EIC.   And may cause more of your Social Security to be taxable.

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VolvoGirl
Level 15

Why did my income not reduce when my gamblimg losses were as much as the winnings

Gambling Losses are an itemized deduction and you need to itemize on schedule A to use them.  So if your Standard Deduction is more they won't be used.   Even if you itemize deductions and use the losses, the increase in your AGI from the income may affect and reduce some credits on your return like the EIC.   And may cause more of your Social Security to be taxable.

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