This year so far I will have $47,500 in reported W2G wins. I have never won this much for the year so I never deduct as it doesn't make sense. As is always unless you're a "one-shot" winner, a regular gambler usually has losses to report. I have never done this before. Here is my win/loss statement:
Summary Since 1/2020:
Total Deposits: $9,154.36
Total Withdrawals: $16,416.62
Net Total: -$7,262.26
Win/Loss Since1/2020:
Bet Winnings: $142,585.72
Stakes Wagered: $134,544.42
Win/Loss: $8,041.30
So I read all kinds of things and it says you simply cannot just use the win/loss number. Otherwise it seems pretty simple if I'm correct. I would take $47,500 and subtract $8,041.30 which would give me $39458.70 in losses. I don't even know if that is correct.
Or am I reporting the $47,500 as the W2G's and subtracting that from the Bet Winnings of $142,585.72 which would give me $95,085.72. The $95,085.72 I would report as "other" winnings not reported as W2G's? Am I correct so far? I would then use the Stakes Wagered number $134,544.42 as my loss number giving me a net positive of $8,041.30. So instead of paying taxes on $47,500, Im only paying taxes on $8,041.30?
The whole way I typed it could be wrong. It seems simple but apparently it isn't. The stakes wagered number flew me through the roof. I have no clue how to properly calculate losses and I need someone who ACTUALLY has reported losses against wins before on a tax return.
