Why did my Federal Income Tax increase by $600 even though my total income from Gambling winnings is 0 due to gambling losses?

Forum|Forum|4 years ago
February 28, 2022
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TurboTax Deluxe Online

xmasbaby0

Level 15

Gambling

To enter the W-2G or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

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

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550 (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550 (65 or older + $1350)

MARRIED FILING JOINTLY $25,100 (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD $18,800 (65 or older +$1700)

Legally Blind + $1350

**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.**

JillS56

Level 10

Gambling winnings are reported as other income on the 1040 and gambling losses are reported on Schedule A as Other Itemized Deductions. In order to get credit for your losses your Schedule A total must be more than the standard deduction for your filing class (Single/MFS - $12,500; MFJ - $25,100; HoH - $18,800). If you did not have more than the standard deduction, you did not get to take your gambling losses. Which is why you may have a Federal tax increase of $600.