Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
dawnst23
New Member

How do you pay taxes on slot winnings. I had no other income. State was paid at the time.

 
1 Best answer

Accepted Solutions
SherryM
New Member

How do you pay taxes on slot winnings. I had no other income. State was paid at the time.

1. Open (continue) your return in TurboTax.
2. In the search box search W2G and then click the "Jump to " link in the search results.
3. Answer yes on the gambling winnings screen and follow the onscreen instructions to enter your W2 form.

If you itemize instead of taking the standard deduction, you can deduct gambling losses up to the amount of your winnings.

For example, if you had $10,000 in winnings with $7,000 in losses, the loss would offset (reduce) your taxable winnings to $3,000 ($10,000 – $7,000 = $3,000) and you'd only pay tax on $3,000 instead of the full $10,000.

If the situation were reversed and you had $7,000 in winnings with $10,000 in losses, you wouldn't be able write off the $3,000 net loss, nor could you carry it forward to next year's return. On the bright side, your $7,000 winnings would not be taxed, as your losses completely offset your winnings. Again, you'd need to itemize deductions to realize this benefit.

View solution in original post

1 Reply
SherryM
New Member

How do you pay taxes on slot winnings. I had no other income. State was paid at the time.

1. Open (continue) your return in TurboTax.
2. In the search box search W2G and then click the "Jump to " link in the search results.
3. Answer yes on the gambling winnings screen and follow the onscreen instructions to enter your W2 form.

If you itemize instead of taking the standard deduction, you can deduct gambling losses up to the amount of your winnings.

For example, if you had $10,000 in winnings with $7,000 in losses, the loss would offset (reduce) your taxable winnings to $3,000 ($10,000 – $7,000 = $3,000) and you'd only pay tax on $3,000 instead of the full $10,000.

If the situation were reversed and you had $7,000 in winnings with $10,000 in losses, you wouldn't be able write off the $3,000 net loss, nor could you carry it forward to next year's return. On the bright side, your $7,000 winnings would not be taxed, as your losses completely offset your winnings. Again, you'd need to itemize deductions to realize this benefit.

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v