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June 1, 2019
Question

If you receive $20000 worth of w2g for online blackjack winnings over $1200 and only win $2000 total at the end. How do you report that on your taxes?

  • June 1, 2019
  • 6 replies
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W2g Reporting Gambling winnings

6 replies

Employee
June 1, 2019
Was "$2000 total at the end" in one day?  Or is that over the course of more than one day?
Employee
June 1, 2019
$20,000 or 2,000? You said both.
kedzkidsAuthor
June 1, 2019
$2000 at the end.   Lost $18000 of the $20000 worth of wg2. All in 1 “session”.   Can you use the session method in bjack. I know a few years ago they tried to implement Gross Income defined which I am not sure went through. This is online BJ that is why the W2G
Employee
June 1, 2019
So where does the $1200 you mentioned come from?
Employee
June 1, 2019
Yes, you can use the "session" reporting.  So if it was all at one game, one location, and one day, you will report a net of $2000, which will show up on Line 21 of Schedule 1.

However, the IRS computer will expect to see $20,000.  So you will enter $20,000, but counter-act that by a negative $18,000, so the final result on Line 21 will be $2000.  Somebody else can help you figure out how to do that in TurboTax.

As a side note, you mentioned the $1200 threshold for issuing a W-2G.  You need to keep in mind that you need to report ALL session-wins, not only ones that show up on a W-2G.  The session-losses will be an Itemized Deduction on Schedule A, as Critter mentioned below.
Critter
Employee
June 1, 2019

Sorry .. you cannot net the losses against the winnings ... all winnings must be reported ... then the losses are listed and IF you can itemize then the losses up to the winnings can be taken on the Sch A. 

kedzkidsAuthor
June 1, 2019
So if I am following you you would input 20000 as winnings and claim 18000 as your loss to get to the 2000