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New Member
posted Jun 6, 2019 5:29:40 AM

Gaming winnings and losses should not afffect the amount of the refund or tax owed if you itimized correct

0 2 537
2 Replies
New Member
Jun 6, 2019 5:29:42 AM

You must pay tax to the extent winnings exceed losses.  You cannot deduct losses.

Level 15
Jun 6, 2019 5:29:43 AM

That's not necessarily correct.

Gambling winnings are reported as taxable income, whether you itemize deductions or not. You have to report the full amount of winnings. You do not subtract losses.

If you itemize deductions, you can deduct gambling losses, but not more than the amount of your winnings. If the losses you deduct are equal to your winnings, the deduction will cancel out the income in most cases, so your refund will not change. But if your losses are less than your winnings, you will have additional taxable income equal to the amount by which the winnings exceed the losses, so your refund will be reduced.

The deduction for gambling losses will not completely cancel out the gambling winnings if your itemized deductions are limited because of your income.