Question

I made some gambling $. If my total income, including other sources, is below the threshold to file, do I still need to because part of that income is from gambling?

Forum|Forum|4 years ago
February 23, 2022
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TurboTax Online

No, if your income, including your gambling winnings is below the threshold to file, you do not have to file just because you have gambling winnings. It is unlikely, but possible you could receive a letter that stating that you did not report your gambling winnings, but you can resolve that by responding via telephone or mail and letting them know your income is below the filing threshold.

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B

boo_sterAuthor

Thank you for this response, very much appreciated. It makes relevant a follow-up question, which I probably should have appended to the original one.

Will the IRS consider my "winnings" to be the total amount won, without taking into account losses, or the actual profit? Say I "won" 15,000 but lost 10,000, leaving an actual income of 5,000. Which number, the 15K (winnings) or the 5K (winnings minus losses, or my actual return) will the IRS use to decide whether I've exceeded the threshold?

LeonardS

Yes, the IRS will consider the total amount won without taking into account losses or the actual profit. In your example, the IRS will use the 15K to decide if you exceeded the threshold.

Also, you can only deduct your losses if you itemize your deductions, If you take the standard deduction you can not deduct your losses.

The 2021 Standard Deductions are: