What steps and forms do you need, I won $300 but spent $500. This is just a scenario, but I need to know.
2006-12-08 12:26:52 · 5 answers · asked by itsme 1 in Business & Finance ➔ Taxes ➔ United States
Gambling winnings go on the front of the 1040. Losses go on Schedule A, so if you can't itemize, you do not get a deduction for your losses, but will still be taxed on the $300.
Life sucks, doesn't it?
2006-12-08 12:30:50 · answer #1 · answered by skip 6 · 1⤊ 0⤋
Flo is mistaken. All gambling winnings are taxable no matter how small. Any winnings above $600 must be reported on a W-2G by the payer. Gambling income is reported on line 21 of the 1040. Losses are claimed on line 27 of the Schedule A if you itemize. The deduction can't exceed gambling income.
2006-12-08 21:11:58 · answer #2 · answered by STEVEN F 7 · 3⤊ 0⤋
you would report $300 of gambling winnings on line 21 of Form 1040. you would report $300 of losses on Schedule A (Itemized deductions).
im assuming that you do not itemize your deductions but instead take the standard deduction. if so, you will only report the winnings and will get no benefit from any losses.
2006-12-10 05:49:40 · answer #3 · answered by tma 6 · 1⤊ 0⤋
You may deduct gambling losses up to the amount of your winnings. So in the example you could deduct $300, but you would need to report the $300 in winnings. There is no tax advantage to the $200 you lost.
2006-12-08 20:31:17 · answer #4 · answered by VATreasures 6 · 1⤊ 1⤋
You can only file gambling losses if you have gambling winnings. The government will only tax winnings above 1,199.00 and will give u like a w2 form. Then at the end of the year you have to add your winnings into your earnings then it is taxed. So alot of winnings can put you in a larger tax bracket..........Flo
2006-12-08 20:34:49 · answer #5 · answered by flo 3 · 0⤊ 5⤋