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Gambling : Standard Deduction vs Itemized Deduction

This is my first time filling tax myself so please bare with me. 

I have a gambling income of $7500, which I entered with W2-G. I also do have gambling losses of about $4500, which I entered as it prompted and asked me if I had losses. 

 

I went with itemized deduction and entered my losses under Other Deduction Expenses. 

 

When I proceed, it says that "Standard Deduction is right for you", and I get more tax return with Standard Deduction over itemized deduction. Is it because I do not have enough items and amount to claim with Itemized Deduction? Is it better off to forget my gambling losses and go wtih the standard deduction? 

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2 Replies
rjs
Level 15
Level 15

Gambling : Standard Deduction vs Itemized Deduction

Yes, it's because your standard deduction is larger than your total itemized deductions. You get a larger deduction by using the standard deduction.


Another way of looking at it is that the government is allowing you to deduct more than your actual deductible expenses. That's a pretty good deal.

 

Gambling : Standard Deduction vs Itemized Deduction

Thank you very much!

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