Gambling winnings

[Bigshotlt]

Hello, Turbo Tax lets you enter your gambling winnings and then asks you your losses, but why doesn't it automatically take away your losses if the standard deduction is used? (No schedule A  itemized deductions)

[xmasbaby0]

Gambling

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.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-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.

https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

https://ttlc.intuit.com/questions/1900352-can-i-deduct-my-gambling-losses

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

[Bigshotlt]

Yes I understand that, my question is that the Turbo Tax software should automatically check your deduction type and then eliminate your gambling loses amount if it determines that your best deduction is the standard amount. It does not do this, If you enter loses even though you are taking the standard deduction it does not add it in as income.

[xmasbaby0]

Why are you expecting losses to show as income?   That makes no sense.   Only your winnings show as income.   If you do not have enough itemized deductions to exceed your standard deduction, the losses have no effect whatsoever.    But your winnings are all taxable income.

[Bigshotlt]

No of course the winnings are not showing as income if you enter gambling losses. The software does not verify that you are itemizing on your return to allow for the deduction of gambling losses. That is what I mean, the software should be updated to check the deduction type that is used, and if the standard deduction is the best then any gambling losses that were entered need to be removed.

[xmasbaby0]

The software is not using your losses for anything if you are using standard deduction.  If you do not have enough itemized deductions it just defaults to standard deduction. 

Look on line 12a of your Form 1040----do you see your standard deduction there?

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

  Not sure what you are upset about.   Are you getting errors when you try to e-file?   

[Bigshotlt]

Ok, for some reason before the software was showing no income for gambling winnings for New Jersey State Non Resident, but I had corrected the losses section and then it showed as income. I went back into my federal return and put back the gambling losses, but this time it didn't remove the gambling income from the NJ non resident state form. Don't know how it fixed itself, but it did. Thanks for listening to me, I don't know if anyone else has had this issue, just thought I was making a suggestion for an update that might be necessary with the Turbo Tax software.