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I won $6000 gambling but I spend $8000 that same year. Are the losses I enter $2000 or $8000?

Under wins I entered $6000 but when asked about losses do I enter $2000 or $8000 since I won $6000?
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2 Replies
Hal_Al
Level 15

I won $6000 gambling but I spend $8000 that same year. Are the losses I enter $2000 or $8000?

Q. Are the losses I enter $2000 or $8000?

A. Enter either  $6000 or $8000.  Your loss deduction is limited to your winnings.  If you enter $8000, TurboTax will automatically  reduce it to $6000. 

 

Gambling losses are only deductible as an itemized deduction.  If you do not have enough total itemized deductions to exceed the standard deduction, you  will not get any benefit from the gambling  losses deduction.  That is, your full $6000 winning will be taxable. 

I won $6000 gambling but I spend $8000 that same year. Are the losses I enter $2000 or $8000?

The program asks for all your winnings and all the losses and if you can itemize deductions they program will automatically limit the loss to the total winnings.  You don't have to do any math for the program ...  just follow the input screens.  

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