Gambling winnings and losses reporting

Forum|Forum|3 years ago
November 11, 2022
1 reply
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I’m trying to plan for best way to file my 2022 taxes and am caught up on correct way to report gambling winnings and deduct losses

hypothetical round number example of problem:

player received $100,000 on W2G forms

player has end of year statement and bank receipts showing total annual loss of $50,000.

is player entering $100,000 as gambling winnings from W2G and deducting $50,000 in losses. Or is player entering $100,000 as gambling winnings from W2G and deducting $100,000 in losses since they were negative on the year ?

Not A Product Question

rjs

Level 15

How are you "negative on the year" if you have winnings of $100,000 and losses of $50,000? That looks like a net (positive) profit of $50,000 to me.

How could you be "deducting $100,000 in losses" if you only have a "total annual loss of $50,000"? You can only deduct your gambling losses once, not twice.

You have to enter your W-2G forms showing $100,000 of winnings. You can deduct your $50,000 of gambling losses as an itemized deduction.

tp1986Author

Level 2

Hypothetically: W2G winnings are $100,000

so let’s say player wagers $1,050,000 and is returned $1,000,000, net loss $50,000.

some of those winnings generated w2Gs in the amount of $100,000.

as for backup, player only has annual win/loss statement showing the wager/winnings/net result, plus record of bank withdrawals and deposits only. No daily or session diary