Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Gambling Wins/Loss & STANDARD DEDUCTION Taxpayers (https://www.askmehelpdesk.com/showthread.php?t=744286)

  • Apr 14, 2013, 01:54 PM
    willpeace
    Gambling Wins/Loss & STANDARD DEDUCTION Taxpayers
    For casual Gamblers with a Net Loss... If they are STANDARD DEDUCTION
    Taxpayers (they do Not have Items enough to Itemize)... Aren't they paying
    More Tax & being penalized, since they have to Report their "Gross" winnings
    On Ln #21 of 1040, but... the only way they can offset with losses is to use
    Sched A... once you reduce the Losses on Sched A that offset the Winnings...
    ... a "Wash"... the remaining Shed A Deduction is Less than the Standard Deduction that they would normally take... since they do not have enough to itemize... hence they are paying more in taxes... yet, they technically have NO Taxable gambling Income..?
  • Apr 14, 2013, 03:45 PM
    joypulv
    That's the way it goes - you have to report both winnings and losses, not the net, and losses have to go on Sch A.

    I'm not sure how casual your gambling was, but... um.. I think most casual gamblers without big wins and big losses call a wash a wash and truthfully I don't think the IRS is too interested. What was your biggest single win payout?
  • Apr 14, 2013, 10:17 PM
    AtlantaTaxExpert
    Joy has it right
  • Apr 15, 2013, 09:13 AM
    willpeace
    I have 11K in wins reported to IRS in W2-G's... how can I ignore that & not report... when IRS has W2-G's..?
  • Apr 15, 2013, 12:16 PM
    AtlantaTaxExpert
    You cannot ignore it, so do NOT ignore it, but rather report it.

    You just may not be able to offset it with gambling loss deductions unless you itemize.

  • All times are GMT -7. The time now is 10:47 AM.