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?
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.