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jopaul3
New Member

Why did turbo tax software not deduct my gambling losses? My losses equaled my winning, but it still taxed the winnings.

I inputted about six W2G. After each input, my taxes increased. Winnings totaled $10,851. The tax added was $3,889. 

I then listed my losses as $10, 851.  But when I hit "done" the taxes did not decrease. It gave me no credit for the losses.

Could there be a glitch with my software?

1 Best answer

Accepted Solutions
xmasbaby0
Level 15

Why did turbo tax software not deduct my gambling losses? My losses equaled my winning, but it still taxed the winnings.

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

Gambling losses are an itemized deduction; you can only get a deduction if the combination of all of your other itemized deductions exceeds your standard deduction.  Losses do not offset winnings dollar for dollar.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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3 Replies
xmasbaby0
Level 15

Why did turbo tax software not deduct my gambling losses? My losses equaled my winning, but it still taxed the winnings.

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

Gambling losses are an itemized deduction; you can only get a deduction if the combination of all of your other itemized deductions exceeds your standard deduction.  Losses do not offset winnings dollar for dollar.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses


**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
tup14
Returning Member

Why did turbo tax software not deduct my gambling losses? My losses equaled my winning, but it still taxed the winnings.

I'm now doing my taxes for year 2021 and I have followed what was posted here for Gambling losses vs Winnings I actually lost more then I won....... lost($48,000)  ....Won ( 46,000) I entered the W-2G for my Gambling winnings on the standard form and when asked for gambling losses I deducted $ 46,000 but still comes up with owing over $5000. I have won in years past but not this amount and never had to pay taxes on my winnings because I have always lost more then I won! I used the standard at first and then changed it to itemized deductions with the same result. My question is when I use the itemizing schedule A it has my losses there! So what am I doing wrong!

And could you explain this...."Losses do not offset winnings dollar for dollar"  Thanks Doug

RobertB4444
Expert Alumni

Why did turbo tax software not deduct my gambling losses? My losses equaled my winning, but it still taxed the winnings.

Your losses will be an item on schedule A.  You can only deduct $46,000 of your losses.

 

The reason it's not 'dollar for dollar' is that your deductions are already $12,550 ($25,100 if you're married filing joint) and your itemized deductions won't increase by $46,000 when you put in your gambling losses.  They just increase TO $46,000.  Then, if you have any other itemized deductions, they continue to go up.

 

You should be able to enter your winnings and losses just as it's laid out above.  If you aren't able to switch to itemized deductions from the standard then there is something wrong.

 

It is a good idea to first clear your cache and cookies - which means removing all of the temporary programs that can gum up your web browser.  If that doesn't work, try using a different web browser.

 

Here is a link on how to clear your cache and cookies.

 

You are probably better off having someone walk through the return with you to look at your entries so I recommend getting live expert help.

 

Here is a link to finding a TurboTax expert.

 

However, that requires upgrading your product which may be an expense you don't want.  In that case you can call an expert and ask questions over the phone.

 

Here is a link to the TurboTax Phone Number.

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