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Level 1

W2g Gambling winnings offset by losses

My W-2 G gambling win is offset by losses. In deluxe version when I claim the loss amount As the same amount as the win  it does not change my refund amount back to where it was before. Or at all for that matter.  I keep reading about itemize deductions  are required however when I change to itemized my refund is even less. TurboTax keeps recommending standard deduction. So it seems although I lost more money then I won I am not able to get my expected refund if I claim this W-2 G win. 

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Accepted Solutions
Level 20

W2g Gambling winnings offset by losses

Gambling losses can only be deducted up to the amount of the gambling winnings.  Gambling winnings are reported on Form 1040 Schedule 1 Line 21 as Miscellaneous Income.  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.

5 Replies
Level 17

W2g Gambling winnings offset by losses

You can only input gambling losses into itemized deductions, you cant net them out with the winnings on the front page of the return..
Level 1

W2g Gambling winnings offset by losses

I don’t understand if I got a W-2 G for a jackpot of $3700, but lost over $5000 at the same casino that issued. Why am I paying taxes on the 3700? I lost way more than 3700 at the same casino
Level 20

W2g Gambling winnings offset by losses

Losses are only deductible up to the amount of your winnings.  Your winnings are entered on tax return as ordinary income.  Any losses are only entered as itemized deductions.  That is the tax code.
Level 17

W2g Gambling winnings offset by losses

The house always wins!
Level 20

W2g Gambling winnings offset by losses

Gambling losses can only be deducted up to the amount of the gambling winnings.  Gambling winnings are reported on Form 1040 Schedule 1 Line 21 as Miscellaneous Income.  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.