If you receive $20000 worth of w2g for online blackjack winnings over $1200 and only win $2000 total at the end. How do you report that on your taxes?

[kedzkids]

W2g Reporting Gambling winnings

[TaxGuyBill]

Was "$2000 total at the end" in one day?  Or is that over the course of more than one day?

[SweetieJean]

$20,000 or 2,000? You said both.

[kedzkids]

$2000 at the end.   Lost $18000 of the $20000 worth of wg2. All in 1 “session”.   Can you use the session method in bjack. I know a few years ago they tried to implement Gross Income defined which I am not sure went through. This is online BJ that is why the W2G

[SweetieJean]

So where does the $1200 you mentioned come from?

[TaxGuyBill]

Yes, you can use the "session" reporting.  So if it was all at one game, one location, and one day, you will report a net of $2000, which will show up on Line 21 of Schedule 1.

However, the IRS computer will expect to see $20,000.  So you will enter $20,000, but counter-act that by a negative $18,000, so the final result on Line 21 will be $2000.  Somebody else can help you figure out how to do that in TurboTax.

As a side note, you mentioned the $1200 threshold for issuing a W-2G.  You need to keep in mind that you need to report ALL session-wins, not only ones that show up on a W-2G.  The session-losses will be an Itemized Deduction on Schedule A, as Critter mentioned below.

[Critter]

Sorry .. you cannot net the losses against the winnings ... all winnings must be reported ... then the losses are listed and IF you can itemize then the losses up to the winnings can be taken on the Sch A. 

[kedzkids]

So if I am following you you would input 20000 as winnings and claim 18000 as your loss to get to the 2000

[Critter]

correct ... follow the interview instructions

[macuser_22]

Itemizing may or may not reduce your tax depending on your marital status, income  and other deductions.

For 2018 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount.  Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax,  Property (real estate and personal property) taxes at $10,000.

Mortgage insurance premiums. The itemized deduction for mortgage insurance premiums expired on December 31, 2017.

Mortgage interest on loans after Dec 16, 2017 may be limited.  

The Mortgage must be secured by the property to qualify.

 Interest on home equity loans and lines of credit are deductible only  if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions).    Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction.    (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.

2018 standard deductions

$12,000 Single
$18,000 Head of Household
$24,000 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,600 if the taxpayer is also unmarried.

[kellygary6]

Maybe.  The norm appears to be report winnings, then report losses on the deduction page.

But, this article talks about SESSION numbers instead.

[Critter]

You can follow the tax court's assumptions to net the daily win/loss method however be prepared to defend that choice in tax court if you do not enter all of the reported gambling winnings on the tax return.  Yes you can win with that argument but is the cost and hassle worth it to defend your position ?