Tax on Gambling? someone help me out?

Question

this is real ok.
in a year i have lost $1000 and then i recovered back $900 that mean the net is a loss of -$100.
my question is do i have to pay part of the $900 of winning to tax?
it is an income but i still have minus -100.

any answer apreciated..

Answer 1

As long as you got a W-2G for your $900 gambling winnings you would report that on your 1040 as gambling winnings, and report the loss on Schedule A - Itemized Deductions under Other Deductions - line 27. You have to itemize though to get the benefit of the loss, and you can only deduct the loss up to the amount of your winnings. In your case you would have $900 of gambling winnings, and $900 of deductible gambling losses (The extra $100 of gambling losses just disappears as you can't carry it forward to use in a future year). Also, you need to report the gambling winnings on your state return, and some states (Massachusetts is one of them) don't allow you to deduct gambling losses.

Answer 2

PepsiLime is correct. You must include your gambling winnings in income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct gambling losses you had during the year, but only up to the amount of your winnings.

Answer 3

You must report all gambling winnings. The gambling payer will issue a form W-2G and they also send this to the IRS.

If you itimize your tax return (instead of taking the standard deduction), then you may claim your losses UP TO the amount of your winnings.

If you don't itimize, then you just eat the losses and you pay income tax on all the winnings.

Answer 4

You have to claim the winnings as micscellaneious income. If you itemize, you can deduct the losses up to the amount of your winnings. If you don't itemize, you can't deduct the losses - you can't just net them out of the winnings.

Answer 5

you do not owe any tax. when you win and lose over the year, you only owe on winnings, and the losses count against those. but, you cannot deduct your losses beyond your winnings (net of zero)

p.s. i wish i didnt know this answer!

Answer 6

You can only deduct losses against winnings, so you don't get a benefit from losing more money than you won.

Answer 7

PepsiLime gave you a very accurate and detailed explanation. There is nothing more to add.

Answer 8

I believe you do. I forget what the amount is when you have to pay tax but I think its under $1,000.

Answer 9

no that is y gambling is illegal because they cant tax it just like drugs thats the only reason drugs are illegal because the government cant tax them..