topic Gambling winnings taxes in Get your taxes done using TurboTax

Gambling winnings taxes

nex — Thu, 17 Dec 2020 11:21:14 GMT

I had no job for the entire tax year (Jan 2019 - Dec 2020). However, I earned some income from online poker winnings (around $11,000). I'm a bit unsure of how I am supposed to be reporting this income or if I just don't even need to file a return at all since its less than $12,000. I didn't keep an accurate record of winnings/losses, just the net profit (money Ive withdrawn from my poker account+what remains on the account). The website I use doesn't keep records of win/loss past 30 days so I have no way to retrieve records on all my individual wins/losses. Since I make less than $12,000 do I just not file a return for federal and state? And for city taxes my city requires filing even if you don't earn income, so if I don't file for federal/state would I report the income to the city even though I didn't report the income to federal or state?

Re: Gambling winnings taxes

NCperson — Thu, 17 Dec 2020 14:00:46 GMT

if your income from all sources does not exceed $12,200 (filing single), you are NOT required to file.

Also, gambling losses are not netted again gambling gains, so if you gains exceed $12,200 you are required to file and pay taxes on those gains.

The losses are placed on Schedule A as a deduction (which don't mean anything unless you itemize)

Re: Gambling winnings taxes

xmasbaby0 — Thu, 17 Dec 2020 14:10:36 GMT

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

Re: Gambling winnings taxes

xmasbaby0 — Thu, 17 Dec 2020 14:36:23 GMT

If you were paying to gamble online and that $11K you mentioned is just how much you came out "ahead" then you do not subtract losses from winnings to determine whether to file a tax return. ALL of the winnings "count."

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

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)

Re: Gambling winnings taxes

Anonymous — Fri, 18 Dec 2020 07:54:08 GMT

I didn't keep an accurate record of winnings/losses, just the net profit (money Ive withdrawn from my poker account+what remains on the account).

so it seems likely that your gross winnings were more than $12,200 which requires you to file a tax return. seek professional help. you'll need it. and if you continue to gamble start keeping written records. without them you're at the mercy of the IRS should they come calling.

Re: Gambling winnings taxes

xmasbaby0 — Fri, 18 Dec 2020 13:06:43 GMT

@nex It looks like you are adding information by editing your original post instead of clicking Reply. The information added helps us to understand, but it is VERY confusing at the same time. You started out with a briefer question to which you recieved a couple of replies, and now there is a lot more information -- and questions about your city returns-- in the original post--making it hard to follow . If you need or want to add anything else here use the "Reply" button instead of adding it all to the original post at the top of the screen.