Hi all - this is a tricky one (at least to me).
I have a huge amount of reported gambling winnings throughout the course of the year. I am talking in the millions...strictly from volume of play, not because I actually 'won" that amount. My win / loss statement to date actually shows a pretty sizeable net loss for the year.
I play on an app just about every day so between covid and ease of access it is very easy to accumulate stakes wagered and winnings.
Assuming I would need to report the winnings and then itemize my deductions in order to offset those with my gambling losses...I am worried that it will look absolutely insane because my salary/income is under 100k a year and I am reporting table game winnings of over 5.2m while also having casino stake of 5.4m (for a net loss of 200k).
I normally just claim the standard deduction, but considering what I have read about not being able to offset gambling losses there, that would put me in a VERY bad spot. As it gets closer to tax time I plan on sitting down with a financial advisor to discuss more, but was curious if I am on the right track with needing to itemize and not being allowed to just net my wins and losses.
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You do not just "net" your wins and losses on your tax return. The only way to claim losses is by itemizing your deductions.
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
You can try using the Taxcaster tool to get an idea of how it will look for your 2021 tax return.
https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
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