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February 6, 2025
Question

Gambling losses not handled correctly on form 1040

  • February 6, 2025
  • 2 replies
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I had Gambling winnings I entered with W2-G.  My tax burden increased as expected.  I completed the questions and entered gambling losses which should have reduced my tax burden (only that portion that was increased by the gambling win).   The tax burden remained after entering losses with only minimal adjustment.  It should have been almost completely eliminated as my losses were almost equal to winnings.  To prove this out, I created a new tax return and did not enter gambling winnings and losses, recorded all values.  I went back in, added the winnings, noted the tax burden increase with each win.  I then added the loss and found it only reduced the tax burden by 1 of the win amounts.  I downloaded form 1040, Sched A and Sched 1 instructions along with form 1040 and ran the numbers manually and then called the IRS to confirm that based on the amount of my wins and losses, I effectively should only owe taxes on the other portions of my income.  How do you report issues like this to Turbo Tax for resolution?

 

    2 replies

    Employee
    February 7, 2025

    Gambling

    To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

    You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

     

    https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

     

    Gambling winnings are taxable income.  Losses are an itemized deduction.  If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.

    https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

     

     

    2024 STANDARD DEDUCTION AMOUNTS

    SINGLE $14,600    (65 or older/legally blind + $1950)

    MARRIED FILING SEPARATELY $14,600    (65 or older/legally blind + $1550)

    MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

    HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

     

     

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    skipandljAuthor
    February 7, 2025

    I exceed standard deductions without the gambling win/loss so that is not part of the issue.  I have used Turbo tax for about 10 years and the last 4 I have had Gambling winnings and losses to report without issues.  So unless the IRS agent I spoke with today is incorrect in their information on my tax situation....  The other option of course is for me to no longer utilize Turbo Tax.  I have 160 in to so far this year as we have to report to 3 states and federal and that does not include the efile costs.  

     

    skipandljAuthor
    February 7, 2025

    Perhaps for this year, the best answer is to simply file without utilizing this tool any longer so I can get the filing done and resolved quickly.  Thank you for the quick response.  We will take that approach for this year and a different option for next year.

     

    April 15, 2025

    how come I did not receive a W2 form from Betmgm and FanDuel. Between both Apps I won 2,154 and lost 1,212.00?

    LenaH
    April 15, 2025
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