Question

If I got a CP2000 for a 1099k Paypal that I forgot to report. Do I just go back to my 2022 return and upload that 1099k and submit ammended return?

Forum|Forum|1 year ago
January 29, 2025
2 replies
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The 1099k says I had 200k of third party goods. However, It is related to gambling transactions. And my W/L was a loss on the year. So do I just report that and add in that same amount back to offset?

M

MinhT1

Yes. You should amend your 2022 tax return.

Please read this TurboTax Help topic on how to amend a prior-year tax return.

However, please note that gambling losses do not reduce your gambling winnings dollar for dollar. Gambling winnings are added to your taxable income while gambling losses (limited to the amount of your gambling winnings) can only be claimed as an itemized deduction on Schedule A.

If the total of your itemized deductions including the gambling losses do not exceed your standard deduction (or will only increase your itemized deductions by an amount less than the losses themselves), then you do not have the full benefit of the losses on your tax.

For tax year 2022, standard deductions are:

$25,900 for married couples whose filing status is “married filing jointly” and surviving spouses;
$12,950 for singles and married couples whose filing status is “married filing separately”; and
$19,400 for taxpayers whose filing status is “head of household.”

The additional standard deduction for a blind taxpayer—i.e. a taxpayer whose vision is less than 20/200— and for a taxpayer who is age 65 or older at the end of the year is for each instance:

$1,400 for married individuals; and
$1,750 for singles and heads of household.

For more information, please read this TurboTax article.

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T

Taxes4DummiesAuthor

With how common gambling is, there should be more guidance here

If Paypal is reporting I received 200k from Draft Kings, but Draft Kings shows I had a loss on the year gambling, what are we even talking about here?

I obviously should have reported it, but if I took the standard deduction for that year, now I can't itemize the 200k?

M

MinhT1

When you amend your 2022 tax return, you can itemize your deductions, even if you took the standard deduction in the original return.

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M

Mike9241

Yes, you must amend. sooner or later, you'll probably get a notice from the IRS about the missing 1099-K. you can not import it into your return. import is limited to the current tax year which is 2024.

you need to report winnings. as income. Losses and costs are an itemized deduction on line 16 of schedule A. For itemization to be of benefit, your itemized deductions must exceed your standard deduction. Turbotax will itemize between the two.

if you are married filing separately but did not live apart from your spouse for the last 6 months of 2024, both spouses must use either the standard deduction or itemized deductions.

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Taxes4DummiesAuthor

I already got notified by IRS that I owe 70,000 dollars for a year I lost gambling and am trying to see If I can just add back to the form and amend or if I need to pay someone 1000 bucks to address properly