Gambling winnings

Forum|Forum|4 years ago
April 12, 2022
6 replies
15 views

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

Level 15

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

BigshotltAuthor

Level 2

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

Level 15

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.