topic Tax Due ? in Deductions & credits

Tax Due ?

Eduardmdrain — Mon, 30 Mar 2020 21:51:35 GMT

I am over 65 filling out a 1040 SR for Tax year 2018. After filling out the form I get a refund of 3 dollars, now my question is..when I enter my gambling winnings of over 5,000 dollars then I subtract the same amount for loses, why do I get a tax due ?

Re: Tax Due ?

Opus 17 — Mon, 30 Mar 2020 22:13:35 GMT

Because gambling losses are an itemized deduction. You don’t get any tax benefit unless you are already itemizing your other deductions. If you are using the standard deduction, and your other itemized deductions don’t add up to be enough to put you over the limit, then you will not actually be able to deduct your losses.

Re: Tax Due ?

ReginaM — Mon, 30 Mar 2020 22:20:09 GMT

It is probably because you do not have enough to itemize deductions. You can claim your gambling losses up to the amount of your winnings, but you can only claim your losses on your Schedule A, itemized deductions.

For more information on your Gambling Losses follow this link: Gambling Losses

Here is the Standard Deduction Chart from IRS Publication 501:

Re: Tax Due ?

Critter — Mon, 30 Mar 2020 23:28:27 GMT

You cannot be filling in a 1040SR for 2018 since that is a new form starting in 2019 ... but to your issue ... when you have SS benefits on a return and add more taxable income then more of the SS benefits become taxable EVEN if you later negate the income on the Sch A .... many retirees find this to be a cruel joke when they win at the casino.

Re: Tax Due ?

Eduardmdrain — Thu, 02 Apr 2020 17:12:22 GMT

Thank you.