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