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frank10
New Member

I entered my gambling winnings and then my taxes due goes up. When I enter my losses for the same amount the taxes do not decress

my taxes due were 3400.00 I entered my gambling winnings and then my losses which were the same and now my taxes are 6500. Why did my taxes go up?

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4 Replies
KrisD
Intuit Alumni

I entered my gambling winnings and then my taxes due goes up. When I enter my losses for the same amount the taxes do not decress

The losses do not always negate the winnings.

Gambling winnings are taxable income. They are reported on 1040 line 21 as income.

Gambling losses can only be up to the amount of your winnings and are reported on Schedule A line 28.

If you do not have enough deductions to itemize and use the standard deduction instead, the gambling losses are not counted.

https://www.irs.gov/taxtopics/tc419.html


frank10
New Member

I entered my gambling winnings and then my taxes due goes up. When I enter my losses for the same amount the taxes do not decress

Not sure if I asked  my question right my losses were more than my winnings not sure why I would owe anything
KrisD
Intuit Alumni

I entered my gambling winnings and then my taxes due goes up. When I enter my losses for the same amount the taxes do not decress

Yes, the thing is- the IRS first taxes your winnings. No way around that. Then if you have losses, you can enter those BUT ONLY UP TO YOUR WINNINGS. So if I win 10,000 (I wish) and lost 25,000, I can only enter 10,000 as a loss. Now if this was a business and I made 10,000 but had 25,000 in expenses, I could claim a loss. IT IS NOT THIS WAY WITH GAMBLING. The gambling loss is not applied against your winnings. Winnings and losses are reported in two different places. You will be taxed on winnings, no matter how much you lost. NEXT IF you itemize deductions (Taxpayers have the option of itemizing or taking the standard deduction) the gambling losses will be included, but if you take the standard (which is usually more) the losses won't count. I think that in your case, when you enter the winnings your tax goes up (makes sense, you have to pay tax on the winnings) and when you enter the losses, the tax due doesn't change because you still don't have more itemized deductions that the standard deduction, so the losses don't count.
KrisD
Intuit Alumni

I entered my gambling winnings and then my taxes due goes up. When I enter my losses for the same amount the taxes do not decress

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