Hello,
For the 2021 Tax year, I understand that gambling losses cannot exceed the amount won and that they are placed in itemized deduction if you meet the amount, else standard deduction. However, how does the loss amount affect the Adjusted Gross Income? Does/should the loss lower the AGI or just taxable income? When I look at the Form 1040 worksheet and remove the loss amount in the Schedule A > Miscellaneous Deduction worksheet, it appears to just lower the taxable income. Should this be expected or should I expect to see the AGI go down as well? Thanks!