I have more gambling losses then winnings. when entering the equal amount of losses my refund does not change. shouldn't it increase?

[VanessaS]

To be able to deduct gambling losses you need to be eligible to itemize your deductions on Schedule A instead of using the standard deduction. 

You can only deduct gambling losses up to the amount that you won gambling. For example, if you won $500 and lost $1000, you would only be able to claim $500 in gambling losses. What this means is deducting your losses allows you to avoid paying tax on your winnings, but nothing more.

For more detailed information, see this article: https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Can-You-Claim-Gambling-Losses-on-Your-Taxes...

[s_starnadori]

I have the same issue.  Even when I change to itemized vs. standard It does not increase my refund. I don’t know how to get around this

[wkdclwnz24]

Same here. Is there a glitch in TurboTax? When entering same amount of losses as winnings, it has me owing a significant amount in taxes. Yes, my deductions do exceed the standard deduction amount before entering the gambling wins/losses

[ChrisRx]

$4,000 gambling win lowered my refund. When I also put $4000 in gambling LOSSES my refund did not increase at all. I thought that the gambling losses would negate the gambling win, but it didnt. Glitch?

[macuser_22]

Gambling losses are an *itemized* deduction and will have NO benefit unless all your itemized deduction exceed the standard deduction.

VERY few taxpayers are able to itemize unless they also have HUGE medical or Mortgage interest deductions.  For example, if you are married filing jointly your itemized deductions mist be MORE than $24,800 before there is any beneift

2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

[VolvoGirl]

It is very hard now to get to deduct losses.  You can't deduct it directly from the winnings.  The winnings will still show up as income.  You can only deduct gambling losses up to the amount of your winnings if you itemize deductions on Schedule A.  Gambling losses go on schedule A line 28 and are not subject to the 2% threshold.

Gambling Losses are an itemized deduction and you need to itemize on schedule A to use them.  So if your Standard Deduction is more they won't be used.  And since the Standard Deduction has increased a lot more people will be taking the Standard Deduction.

Can I Deduct gambling losses?

https://ttlc.intuit.com/community/credits-and-deductions/help/can-i-deduct-my-gambling-losses/00/258...

[ChrisRx]

Thank you for the quick and concise reply. This makes sense.

[Ileanr]

Re: I have more gambling losses then winnings. when entering the equal amount of losses my refund does not change. shouldn't it increase?

[macuser_22]

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@Ileanr wrote:

Re: I have more gambling losses then winnings. when entering the equal amount of losses my refund does not change. shouldn't it increase?

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Not unless all of your itemized deductions exceed your standard deduction.    Very few taxpayers can itemize anymore.

For 2018 - 2020 many taxpayers that itemized in the past will find that they can no longer itemize because the standard deduction has doubled so all of their itemized deduction s no longer exceed the standard deduction.

Only if all itemized deductions exceed the standard deduction will it be of benefit.

Not all itemized deductions count the full amount. Medical expenses are reduced by 7.5% of AGI so if your AGI is $30,000, for example, then only medical expenses more than $2,250 would be an itemized deduction.

The 2018 tax law also caps the total of Sales tax OR State and local income tax, Property (real estate and personal property) taxes at $10,000.

Mortgage interest on loans after Dec 16, 2017 may be limited.

The Mortgage must be secured by the property to qualify.

Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan.

You can check the actual amount of itemized deductions by using the Search Topics for "itemized deductions, choosing" (under "My Account, Tools" in the online versions). Click on "Change my deduction". That will display the actual amount of itemized deductions vs. the standard deduction. (Be sure to uncheck "Change my deduction" after checking it so you do not lock in the wrong deduction.


2020 standard deductions

$12,400 Single
$18,650 Head of Household
$24,800 Married Jointly

Add an additional $1,300 for over age 65 or blind
This amount increases to $1,650 if the taxpayer is also unmarried.

[DMarkM1]

Gambling losses are an itemized deduction.  So as macuser_22 explains you will only see a change if your itemized deductions exceed your standard deduction.