Gambling winnings and losses

[dh9448]

i put in my gambling winnings and my tax owed went up, but when i put in my gambling losses which was the same amount the tax owed stayed the same, why

[xmasbaby0 · Accepted solution]

Losses do not offset winnings dollar for dollar.  Your losses may not have any effect at all unless you are itemizing other deductions and have enough itemized deductions to exceed your standard deduction.

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

2020 Standard Deduction Amounts

Single $12,400   (+ $1650 65 or older)

Married Filing Separate  $12,400   (+ $1300 if 65 or older)

Married Filing Jointly $24,800   (+ $1300 for each spouse 65 or older)

Head of Household $18,650  (+ $1650 for 65 or older)

[HelenC12]

Gambling losses are not a dollar for dollar reduction of your gambling winnings.

• The reason your gambling losses didn't affect your amount due is because gambling losses are itemized deductions. 
• If your itemized deductions aren't more than your standard deduction, you won't have a tax benefit from entering your gambling losses. 
• The gambling losses are considered to be part of your standard deduction

See this article about gambling loss deductions for more information.

[jjzarelli]

Where are gambling winnings and losses entered?

[Critter-3]

To enter, edit or delete Gambling Winnings and Losses -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income
• On Gambling Winnings, click the start or update button

Or enter gambling winnings on w-2g in the Search box in the upper right of the program screen.  Click on Jump to gambling winnings on w-2g