Hello,
Thank you all for your contributions helping casual gamblers like me navigate the “session gambling” method and hopefully save some money in taxes!
I have some questions I am hoping someone here can answer, and hopefully others looking to file taxes using this method can benefit too:
-Using this reporting method, it sounds like we forego entering W2Gs and instead enter the total of all session wins, and are allowed to offset that with total session losses (itemized up to the session win amount at maximum), if applicable. What happens to taxes already withheld on W2Gs from the past year? Are these applied anywhere on the session method return? It seems like with this method it may make more sense going forward to have no taxes withheld (in case you lose all of the winnings in that session). Could someone answer how this factors in?
-Specifically in TurboTax, how would one complete this session gambling entry? Is it possible? It seems like TurboTax isn’t set up for this method of accounting for gambling entries, but is there a “hack” or workaround that might allow one to enter or override this? If I do not put in w2g information, where would I complete these session entries? I’ve seen some recommend 1099-MISC with session win as one entry and losses in another entry (listing it as negative). Others have said use schedule 1 for winnings and schedule A for itemized losses. What has worked for others and how is this entered into TurboTax?
-Will the return need to be submitted via mail or can it be electronically filed? If so, is there a way to complete the notification form 8275 to disclose session method calculation? If filed electronically, will the return be rejected because the w2g doesn’t line up with IRS totals? If so is there a workaround to this?
Thank you in advance for all your help!
