Help With How to Deduct Gambling Losses

[Juxtapoz]

This year so far I will have $47,500 in reported W2G wins. I have never won this much for the year so I never deduct as it doesn't make sense. As is always unless you're a "one-shot" winner, a regular gambler usually has losses to report. I have never done this before. Here is my win/loss statement:

Summary Since 1/2020:

Total Deposits: $9,154.36

Total Withdrawals: $16,416.62

Net Total: -$7,262.26

Win/Loss Since1/2020:

Bet Winnings: $142,585.72

Stakes Wagered: $134,544.42

Win/Loss: $8,041.30

So I read all kinds of things and it says you simply cannot just use the win/loss number. Otherwise it seems pretty simple if I'm correct. I would take $47,500 and subtract $8,041.30 which would give me $39458.70 in losses. I don't even know if that is correct.

Or am I reporting the $47,500 as the W2G's and subtracting that from the Bet Winnings of $142,585.72 which would give me $95,085.72. The $95,085.72 I would report as "other" winnings not reported as W2G's? Am I correct so far? I would then use the Stakes Wagered number $134,544.42 as my loss number giving me a net positive of $8,041.30. So instead of paying taxes on $47,500, Im only paying taxes on $8,041.30?

The whole way I typed it could be wrong. It seems simple but apparently it isn't. The stakes wagered number flew me through the roof. I have no clue how to properly calculate losses and I need someone who ACTUALLY has reported losses against wins before on a tax return.

[xmasbaby0]

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

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

2019 Standard Deduction Amounts

Single $12,200   (+ $1650 65 or older)

Married Filing Separate  $12,200   (+ $1300 if 65 or older)

Married Filing Jointly $24,400   (+ $1300 for each spouse 65 or older)

Head of Household $18,350  (+ $1650 for 65 or older)

[AmeliesUncle]

Do you know how they arrived at that first set of numbers?

YOU are supposed to keep track of things on a "per session" basis and use those numbers.  You won't like the results on your tax return.

"Per session" means you count what what you ended up with at the end of the day, per game.

For example, let's say one day you wagered a cumulative total of $5,000 during the day on the slots and your cumulative winnings $8,000.  For that day for slots, you count that as $3,000 of winnings.  You do that for each separate type of game.

The next day you wagered a cumulative total of $5,000 during the day on the slots and your cumulative winnings were only $3,000.  For that day for slots, you count that as a $2,000 loss.  You do that for each separate type of game.

If those were the only two days you gambled during the year, on your tax return you would report $3,000 of gambling winnings and $2,000 of gambling losses.