Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-05-2016, 11:23 PM
Junior Member
 
Join Date: Nov 2016
Posts: 1
Gambling Winnings

I have a w2 for $4400 in gambling winnings for prior year. However, according the casino, I put in 100000 in slots but only received 92000 back giving me a 8000 loss. The 8000 loss plus the w2 winnings results in 3600 net loss. I must report the 4400 has other income on my 1040 but since I did not itemize that year I am told I have to pay tax on all the 4400 winnings though in reality i had a loss in the tax year. If I had itemized, my total deductions would have been around 2500 +4400 in losses = 6900 vs std deduction of 6200. I would only be able to add 4400 has gambling losses on schedule A instead?

Is there away around not paying any taxes since I indeed had a loss?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-07-2016, 05:32 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
I have a w2 for $4400 in gambling winnings for prior year. =======>The Form W-2G reports income / withholdings related to gambling. Generally, you will receive a Form W-2G if you receive$1.2K or more in gambling winnings from bingo or slot machines;




However, according the casino, I put in 100000 in slots but only received 92000 back giving me a 8000 loss. The 8000 loss plus the w2 winnings results in 3600 net loss. I must report the 4400 has other income on my 1040 but since I did not itemize that year I am told I have to pay tax on all the 4400 winnings though in reality i had a loss in the tax year.=>>Correct as mentioned above;as the Form W-2G reports income / withholdings related to gambling. Your gambling winnings are generally subject to a flat 25% tax. However, UNLESS you claim the amount of loss on Sch A of 1040 you can not claim the loss but need to report the whole of $4.4K on 1040; the amount of losses you deduct cannot exceed the amount of gambling income you have reported on your return, in your case it is $4.4K.


If I had itemized, my total deductions would have been around 2500 +4400 in losses = 6900 vs std deduction of 6200. I would only be able to add 4400 has gambling losses on schedule A instead? ======>Correct as said, the amount of losses you deduct cannot exceed the amount of gambling income you have reported on your return , $4.4K. Excess gambling losses can not be carried over to next year Gambling losses in excess of gambling earnings cannot be carried forward or back to offset any other income. Thus, a taxpayer can only use losses in the year that they are incurred. -

Is there away around not paying any taxes since I indeed had a loss?===>No I do not think so;you can not claim tax on your gambling income that you pay to IRS on your return.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Online Gambling winnings. amzaphonix77 For 2013 0 01-14-2014 09:58 PM
state tax on gambling winnings fz6188 Income 0 11-12-2013 03:54 PM
Gambling Winnings Are Always Taxable Income Samatg For 2009 0 02-18-2010 05:27 PM
Gambling Winnings Are Always Taxable Income Samatg General 0 02-19-2009 01:17 PM
Gambling winnings in another state conselec Income 1 04-24-2008 11:35 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.