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New Member
posted Dec 29, 2022 7:35:53 AM

In 2022 I won $59,000. How should I file in order to minimize taxes? It was lottery and casino winnings.

I already paid $16,000 taxes on $55000 lottery winnings.

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2 Replies
Level 15
Dec 29, 2022 7:42:53 AM

First you did not "pay" taxes on the winnings already ... there was taxes withheld just like your paycheck has taxes withheld to balance off the estimated taxes you will owe on the tax return.  You will have to enter ALL of the winnings prior to the withholdings being taken out on the return.  And if you kept records of any gambling losses then you may be able to deduct them on the Sch A if you can itemize  deductions.   Other than that there is nothing special to do on the return ... congrats on the winnings. 

Level 15
Dec 29, 2022 7:44:28 AM

Gambling losses can only be deducted up to the amount of the gambling winnings. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8b as Other Income.  The total from Schedule 1 Part I Line 10 flows to the Form 1040 Line 8.

Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

 

To enter, edit or delete Gambling Winnings and Losses -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Less Common Income
  • On Gambling Winnings, click the start or update button

Or enter w2g in the Search box in the upper right of the program screen. Click on Jump to w2g