Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
galact99
New Member

gambling winnings

f one has 30,000 in gross gambling winnings included the cost of the wagers and 32,000 is total wagers losses. I understand you can write off loss up till the total gross winnings. Are you taxed on the 30,000 gross winnings or are the losses deducted first then taxed ?

1 Best answer

Accepted Solutions
DoninGA
Level 15
Intuit Approved!

gambling winnings

Gambling losses can only be deducted up to the amount of the gambling winnings. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income.  Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction.  Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

 

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

View solution in original post

8 Replies
DoninGA
Level 15
Intuit Approved!

gambling winnings

Gambling losses can only be deducted up to the amount of the gambling winnings. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income.  Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction.  Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

 

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

View solution in original post

galact99
New Member

gambling winnings

Thanks for the quick response. I understand all that you answered. What I do not understand is how it will affect my taxable income. If the winnings are 30,000 as extra income and the losses are 30000 in a itemized deduction do I pay taxes on Zero or do I still pay taxes on the 30,000 ? If yes at what rate? 

DoninGA
Level 15

gambling winnings

The winnings are entered on your tax return as ordinary income and added to the other income being reported on your tax return.  What your taxes will be on your taxable income would not be known until you complete your tax return.

The Standard Deduction or the Itemized Deduction, whichever is greater, will reduce your Adjusted Gross Income to arrive at your taxable income.

tdderbort
New Member

gambling winnings

what if we never receives a w2g  for a raffle win. from a 501c  group. they took out taxes then and there. so what now

DoninGA
Level 15

gambling winnings


@tdderbort wrote:

what if we never receives a w2g  for a raffle win. from a 501c  group. they took out taxes then and there. so what now


Did you receive a Form 1099-MISC for the winnings and the federal taxes withheld?  If not, then contact the organization that had the raffle.

KatrinaB48
Expert Alumni

gambling winnings

You will need to contact the company that withheld the tax and request a tax form showing this withholding.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
thezabel
New Member

gambling winnings

I'm doing my grandparents taxes, if they hit a jackpot at a casino, and it was only one time in 2019. Where would I report that at on Turbo Tax?

DawnC
Employee Tax Expert

gambling winnings

There is a section in TurboTax to enter gambling winnings.   Did they receive a W-2G?     You can use that link to enter their gambling winnings whether or not they received a W-2G form. 

 

@thezabel 

 

 

 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v