Gambling Losses and Itemized Deductions

[kellybcmi]

I have about $20,000 in gambling winnings with the same in losses.  My itemized dedcuctions are at $17,300 so it is recommending the standard deduction of $28,500.    I tried overriding, saying I wanted to itemize thinking it would then pull in the gambling losses of $20,000 which would then reduce my taxable income. However it doesn't pull the gambling losses in.

Is there a way to accomplish this?

Thanks

[Bsch4477]

Using your standard deduction you have $28,500 offsetting your $20,000 gambling income. Using itemized deductions you would have $27,300 offsetting the $20,00 so you are better off using the standard deduction. 

[VolvoGirl]

@Bsch4477   Did you add that wrong?  20,000 loss plus 17,300 other itemized equals 37,300.  Or am I missing something?

[HelenC12]

I tried to recreate what you are experiencing and TurboTax gave me Itemized Deductions of $37,300. I entered $10,000 for property taxes, $7,300 for mortgage interest and $20,000 in gambling losses so it would equal $37,300.

• Review your itemized deductions. If State and Local Taxes (SALT) are greater than $10,000, you can only deduct $10,000. 

[Bsch4477]

You’re not missing anything but I did. Guess my morning fog hasn’t cleared yet. Thanks for catching that. 

[Mike9241]

something isn't clear. we can't see your return. if your itemized deductions are at $17,300 before gambling losses and your gambling losses are $20K then your itemized deductions should be $37,300 afterward which exceeds the standard deduction.  maybe, Turbotax is using the standard deduction because it already zero's out taxable income. another possibility is that you're counting your total amounts that can be used in itemizing but not taking into account the following limitations that would reduce the total to a deductible amount. medical is reduced by 7.5% of adjusted gross income, taxes are limited to $10,000, mortgage interest and contributions could be limited gambling losses go on line 16 of schedule A. 

[VolvoGirl]

If it's giving you the Standard Deduction and not showing you Schedule A you can check the actual amount of itemized deductions by using by going to

Tax Tools on left

Tools - Topic Search (top left box)

Type in itemized deductions, choosing. It should highlight that in the list, click on GO

Then Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

[kellybcmi]

Thanks- so did you manually add the losses in the deduction section.  If so, under what category?  I had assumed it would have pulled it in when I entered under the gambling income section.

Thanks

[Jimmy90]

Hi, wondering if someone can tell me what expenses are claimable against gambling winnings for a non-resident alien doing a 1040NR return?  I had 30% of my winnings withheld on a win in Las Vegas during a two week stay. I specifically went to LV  to play in poker tournaments and gamble. Can I claim my travel,  accommodation and per diem costs? Are there any caps or limits on per diem or accommodation costs? I travelled from Australia and returned back to Australia at the end of my trip.

Thanks in anticipation.

[Bsch4477]

None of those expenses are deductible unless you are a professional gambler. 

[Jimmy90]

Thanks. So I would need to claim as a professional gambler and need to provide evidence of this. 

[NCperson]

@Jimmy90 - where is a good article that states what a professional gambler is as taken from an IRS lawsuit.

https://silvertaxgroup.com/professional-gambler-tax/#:~:text=Groetzinger%2C%20created%20a%20sort%20o....

 Gambling must be “pursued full time, in good faith, and with regularity, to the production of income for a livelihood, and is not a mere hobby, it is a trade or business.” 

otherwise, 

https://www.irs.gov/taxtopics/tc419