Over filing threshold in gross gambling winnings but under in profit. Should I file as self-emp. and take standard ded? Or count the $ as other income and itemize losses?

Example: say I have 20k winnings, 15k losses, so a 5k net income. Taking the standard deduction, would I be taxed on the full 5k?

155

Level 15

Mar 23, 2022 10:53:41 PM

are you claiming you are a professional gambler? only a professional gambler can report winnings and losses on schedule C. if so, your gross income requires you to file because losses don't count in figuring gross income for filing purposes.

here's a link to the criteria the IRS applies in determining whether you are a pro gambler

https://www.journalofaccountancy.com/Issues/2012/Apr/20114684.htm

if not, then the $20,000 is reported under other income (schedule 1) and the losses go on schedule A which will only benefit you if you can itemize

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Over filing threshold in gross gambling winnings but under in profit. Should I file as self-emp. and take standard ded? Or count the $ as other income and itemize losses?