- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
@hlynnjr wrote:
Thanks for the feedback and yes it can be convoluted.
I understand the IRS decided to use the -10,200 as an offset to unemployment earnings, however I had $1000 in gambling winnings offset by gambling losses of $1000 - NET $0. Even on the WAGES & INCOME SCREEN they list Gambling Winnings as ZERO.
Then on the FINAL REVIEW SCREEN it shows a -9,200 Other Income which I am assuming is the unemployment exemption less another $1,000. It appears to me that I had to have $1000 in gambling losses and forfeit $1000 of the unemployment exemption to offset the $1000 gambling win. This can't be right.
I will just pay the extra taxes on the extra $1000 in income calculated by TurboTax and ask the IRS later why it is being handled this way. Thanks again!
Gambling losses are not a one-to-one offset of gambling winnings. Losses are entered as a Miscellaneous itemized deduction on Schedule A. If the total of all your itemized deductions are not greater than the Standard Deduction for your filing status then only the Standard Deduction is used. Your $1,000 of gambling winnings is entered on your tax return as ordinary income.