I am so LOST here with Gambling Deductions

[Juxtapoz]

Hello All,

For 2020, I have something like 15-20 W2G's from a casino. These total somewhere around $60,000. These are cumulative for the whole entire year. I deposited/played around $54,000 to the casino throughout the year. I can prove these deposits through my bank statements.

I didn't keep any sort of log. I have no idea with certainty what my losses are but I know what I deposited and that can be proved with bank statements. Because I did not keep a gambling log, I am being told that I cannot claim a loss deduction of $54,000. 

I am trying to understand if I am reporting $65,000 in winnings, but I played $54,000, how am I not permitted to use the $54,000 as the loss deduction? The $54,000 is what I risked throughout the year. My end result is a net gain of $11,000. If I risked $54,000 to win $65,000, how is it that I'm liable for the tax on the full $65,000 in winnings?

I have had numerous people tell me that because I didn't keep a log, I cannot claim any sort of loss deduction. Is this true????

[xmasbaby0]

ALL of your gambling income has to be entered on your tax return.  

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

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)

[Juxtapoz]

This didn't explain anything relevant to the question.

[xmasbaby0]

Read it a few times.  Your losses do not offset your winnings unless you can itemize deductions on your tax return.   You can enter some losses in the same part of the software that you enter the W-2G's  

What it comes down to --sadly-- is that you lost a quite a bit at the casino and you are not going to be compensated for it by the tax system.

[macuser_22]

See IRS Pub 529, page 10.

https://www.irs.gov/pub/irs-pdf/p529.pdf

Gambling Losses Up to the Amount of
Gambling Winnings
You must report the full amount of your gambling winnings
for the year on your Schedule 1 (Form 1040). You deduct
your gambling losses for the year on your Schedule A
(Form 1040). Gambling losses include the actual cost of

wagers plus expenses incurred in connection with the
conduct of the gambling activity, such as travel to and
from a casino. You can't deduct gambling losses that are
more than your winnings. Generally, nonresident aliens
can't deduct gambling losses on your Schedule A.

Diary of winnings and losses. You must keep
an accurate diary or similar record of your losses
and winnings.

Your diary should contain at least the following information.
• The date and type of your specific wager or wagering
activity.
• The name and address or location of the gambling establishment.
• The names of other persons present with you at the
gambling establishment.
• The amount(s) you won or lost.

Proof of winnings and losses. In addition to your diary,
you should also have other documentation. You can generally
prove your winnings and losses through Form
W-2G, Certain Gambling Winnings; Form 5754, Statement
by Person(s) Receiving Gambling Winnings; wagering
tickets; canceled checks; substitute checks; credit records;
bank withdrawals; and statements of actual
winnings or payment slips provided to you by the gambling
establishment.