The total amount you won is taxable. They estimate an amount to withhold -- just like your employer withholds some tax from your paycheck. When you enter the W-2G into your tax return you enter the amount you won and the amount of tax that was withheld. Then the calculations begin and you find out if they withheld enough, too much, or if you owe more.
And the way tax brackets work is that only the amount above the tax bracket limit is taxed at the higher rate. It is not all taxed at the higher rate.
Gambling winnings are taxable income. Losses are an itemized deduction. If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.
https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/
https://ttlc.intuit.com/questions/1900352-can-i-deduct-my-gambling-losses
2020 Standard Deduction Amounts
Single $12,400 (+ $1650 65 or older)
Married Filing Separate $12,400 (+ $1300 if 65 or older)
Married Filing Jointly $24,800 (+ $1300 for each spouse 65 or older)
Head of Household $18,650 (+ $1650 for 65 or older
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
