How can gambling wins be counted towards joint income but not count towards joint losses, when jointly filing married. Hoping this isn’t true. That’s just another irs double standard. just like they need to make a new law that people who can’t itemize for whatever reason can’t claim the losses against the wins! Can you all say revision!
It really makes no difference. When you file a joint return all of your income is combined. Gambling losses are an itemized deduction. If you do not have enough itemized deductions to exceed your standard deduction, the gambling losses have no effect at all.
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.
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.
2021 STANDARD DEDUCTION AMOUNTS
SINGLE $12,550 (65 or older + $1700)
MARRIED FILING SEPARATELY $12,550 (65 or older + $1350)
MARRIED FILING JOINTLY $25,100 (65 or older + $1350 per spouse)
HEAD OF HOUSEHOLD $18,800 (65 or older +$1700)
Legally Blind + $1350
The original answer is wrong. You are allowed to deduct the spouse's losses, when filing a joint return.
"20. Regs. Sec. 1.165-10 states, “Losses sustained during the taxable year on wagering transactions shall be allowed as a deduction but only to the extent of the gains during the taxable year from such transactions. In the case of a husband and wife making a joint return for the taxable year, the combined losses of the spouses from wagering transactions shall be allowed to the extent of the combined gains of the spouses from wagering transactions.”
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