I do my families taxes - in 2019 one son was online betting. I received a summary of his activity (and am receiving a spreadsheet with each transaction). In talking with the Casino their opinion is he did not have any reportable income. The summary record is below -
how do I enter the information into Turbotax (if at all)?
SBWagers $21677
SBWinnings $20502
WinLoss -$1174.89
GamingDeposits $2003
GamingWithdrawals $669
Net Loss: -$1334.58
SBWagers $21677 = money wagered
SBWinnings $20502 = money won
WinLoss -$1174.89 = net loss (21677-20502=1175)
GamingDeposits $2003 = money wagered
GamingWithdrawals $669 = money won
Net Loss: -$1334.58 = net loss (2003-669=1334)
i totally disagree that he had no reportable income or deductions.
winnings 20502 + 2003
losses on schedule a limited to winnings 20502+2003
you can not net winnings and losses. winnings must be reported gross and losses are limited to winnings and are only deductible if one itemizes.
I don't understand how there can be so much discrepancy on this! Where should I get the definitive answer?
Thanks though, I appreciate your response.
To add to the discussion, I asked for a W2G to be generated and they said they won't, he didn't qualify for one!
Based on the winnings, per the instructions at https://www.irs.gov/pub/irs-pdf/iw2g.pdf a W-2G is not required. But that doesn't negate the requirement to report it to the IRS.
Reportable Gambling Winnings
Report gambling winnings on Form W-2G if:
1.The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine;
2.The winnings (reduced by the wager) are $1,500 or more from a keno game;
3.The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament;
4.The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:a.$600 or more, andb.At least 300 times the amount of the wager; or
5.The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).
you could call the IRS, upgrade to live, or wait to see other responses.
https://ttlc.intuit.com/questions/4124827-how-do-i-connect-with-a-tax-expert-in-turbotax-live
the reason no w-2g there was probably no one bet where he won more than the threshold for issuing the form.
He wagered more than he won. There is no reportable income.
i take back my original answer.
actually i believe the correct way is that you have to look at each separate bet
bet 100 win 90 net loss 10 - may be used on schedule A to offset taxable winnings
bet 100 win 150 net win 50 - 50 is taxable winnings
so if he lost money on every bet, there's nothing to report.