Form 1040 Gambling Winnings and Losses

[@JasonDKnott]

For a 2022 updated video: kzbin.info/www/bejne/p5vMZI2Jott8fpo

[@slotmania3668]

Great video, can you show how to report income and losses as a professional gambler on a schedule C?

[@makerecordsoundgreat]

Thank you for the fantastic, informative video. I live in Nevada and I am preparing my 2022 taxes.I gambled in 2022 and kept detailed records of my gaming results. I won a little over $4,000.00 and loss close to $5,000.00. In Nevada you are allowed to offset your wins if you have lost more than you won. I reported my gambling winnings on schedule 1, line 8 b of my 2022 1040. I reported my losses as an itemized deduction on Schedule A. From the research I have done, it appears that I am permitted to use the Standard Deduction of the $12,950.00 on line 12 of the 1040, instead of the itemized deduction related to my gaming. Is this accurate?

[@suzieheng3953]

I play with the player's card, and I have lots of those winning tickets through the year, but I keep putting it back to the machine, and it makes me look so good, actually I lost almost all my money, sad and depressed 😔 seeking help through gambler group and I forgot to my annual statement is a loss. I feel like never play the slot machine again. I'm too depressed seeing all winning tickets but ending losing my money, and my head is not at the right place. Feel like living on the edge.

[@jeffd8765]

In the video, you had W-2g $15,700 (wins) and $18,600 (losses). You stated you need to add other winnings and losses. I assume the $18,600 was a net loss. For conversation purposes, Lets say that the fictitious John gross losses were $118,600 and gross winning were $100,000 (which $15,700 was reported via W-2g) for a net loss $18,600 in your video. Question, what numbers do you fill in? Where do you put the extra $100,000 in wins and losses?

[@jeffd8765]

Also do you need to add every single win or loss or can you do it by session? For example, if you play the $1 slots for 8 hours and won $50, can you state your session was a $50 win or do you have to keep track of each win and loss and state $1,050 wins and $1,000 loss for a net of $50.

[@JasonDKnott]

Any additional gambling winnings that were not reported on a Form W-2G can be added to Schedule 1, Part 1, Line 8. On the new Form 1040 Schedule 1, there is a line item (8b) for gambling income. The losses are still reported on Schedule A as an itemized deduction.

[@jaymay5307]

My main question is figuring out what a loss is on the Win/ Loss statement. I have about 400K + in total winnings across 4 online casinos, but I wagered up to 500k . Do my WAGERS ( since they go over the amount returned) count as losses? Would I report the 400k as income and then 400k in losses? I have a net loss of 17 k between all of the apps, but to my understanding, that extra 17k goes beyond what I'm allowed to report since we can only report up to what we've won.

[@the3onions]

Wagers are not losses unfortunately

[@the3onions]

Since ur at a net loss u don’t have any “gambling income”

[@TanyafromVegas]

Hello Jason, great video! Question: my losses are much greater than my winnings. My standard deduction is higher than it would be to itemize. I have my W-G's and my win/loss statement from the Casino. Are you saying we have to itemize in order to offset and not pay taxes?

[@markciarlillo7823]

Did you have to end up paying taxes for this?

[@WheresKdot]

This may seem like a stupid question. If I won 50k total for the year, but wagered 51k, I would be able to deduct the total 50k correct? Since I wagered more than I won that would be considered a loss correct?

[@alexcolombu1025]

Yes and you may also get a refund for how much taxes they took out of that 50k

[@richricogranada9647]

Why don’t you show examples on how to report losses to offset the winnings for people who don’t play with player’s cards and don’t get statements from the casinos?

[@JasonDKnott]

Yes! We will create another video with some more in-depth examples covering these scenarios.

[@youngerthug2356]

@@JasonDKnott Hey man thanks for the very helpful video! Any chance you were thinking about following up on this with a more detailed video? I would love to know the process for the ledger/journal and how to file those extra gambling winnings and losses that aren't reported through a 1099 or w2g! Thanks again!

[@ramblinman123]

Jason, I have a question regarding how winnings are reported. When reporting your end of year winnings on the 1040 do you include your wagers in that number? I have seen some websites say that you do so, which doesn’t make much sense at all when it comes to sports betting. For example, if I wagered $1,100 and won $1,000 off of that wager would my winnings on the 1040 be $2,100 or $1,000? Thanks for the informative video.

[@youngerthug2356]

I also would like to know this! I have seen on websites that you would report your winnings in full (in this scenario $2,100) but then you could deduct the initial wager ($1,100) in your itemized losses. This doesn't seem logical however... I would love to get your opinion on this ​ @Jason D. Knott

[@danx2793]

My tax people told me that if i win more than $4500 I need to file my taxes quarterly or they will penalize me if I wait till end of year. Any thoughts on filing quarterly?

[@jerrymaushard3835]

The IRS has not thought through gambling winnings and loses clearly. Such as online gambling. This gets very tricky and usually the gambler gets the short end on the stick.

[@PurpleOuchie]

They know exactly what they're doing to make sure we get the short end.

[@rachelmartinez622]

Perfect video...thanks so much for explaining everything I needed to learn. You made my day.

[@jeanbkletsgo7446]

Every jackpot I won like handout pay for w2g. I never asked to take taxes out. But when I saw my win/loss statment, it show that I won 21k but I've lost 28k. So I need to add 21K for income and deductions, is that correct?

[@thelovefamilymilitarypod]

Thank you so much for the video & it was super helpful

[@juanaallen5885]

Very good video 🎉🎉🎉

[@JasonDKnott]

Thank you!

[@NewYorksFinest1]

Question: I won a $1400 jackpot at 1130pm new years eve but I've lost wayyyyyyy more in 2023 can I use my atm debit withdrawals from the casinos as proof of my losses?

[@suzieheng3953]

Let say that throughout the year, I got those winning tickets for $150,000 added together, but I keep putting them back to the machine, and I play with my club card at the end of the statement year my lost $11,000.00 how do I deduct my losses? I actually lost lots of money, but those tickets make me looking. I am winning a lot. How do I deduct my losses?

[@Krystaldoll282]

I won $49,000 in 2021. What can I use to prove my loses? Statements from the casinos? I pull cash out of the bank because I play slots. Proving cash is hard. I could pull the day if, the day or two before, or sometimes I have pulled from the casino kiosks! What do I need to prove my losses and does it get sent in to the IRS? Or do I just have it in order just in case I get audited? Also, I’m single and in California and I don’t usually file long form. Can I file long form just to claim my loses?

[@JasonDKnott]

Any gambling losses you claim on your tax return should be supported by written records, statements, receipts, etc. You don't need to provide this information to the IRS when you file your tax return, however, you should have it available in the event of an IRS audit and they want to see support for the losses.

[@Krystaldoll282]

@@JasonDKnott I have another question. I am single and living in California. I had two jobs with an income that totaled about $56,000 combined and then I have gambling winnings that totaled almost $49,000 which puts me at about $105,000 of income for the year 2021. I don’t really have much deductions, I don’t own a home, I rent. It s my understanding though I must go long form to file my taxes.Is this correct? I have very little medical. I could maybe claim $300 for the year and the only other thing I think I would have would be my losses on the winnings. What do I do? I feel like with not much defections I’ll pay even more in taxes because I don’t even get the standard deduction that goes with the short form. What can I do? What do you suggest? Thanks again in advance. Your videos are good.

[@vuthsuon209]

do you gambling a lot and do you have membership cards at those casinos? If so you can print your win/loss statements. They track all the money going in and out.

[@Krystaldoll282]

Thank you for your video.

[@JasonDKnott]

You are welcome!

[@adam111ism]

Let’s say you were on one sports book and you had won five 500$ bets and you also had lost three 500$ dollar bets. Would that Sportsbook report you for having won 1000$ or 2500$?

[@juanaallen5885]

How do you amend an amended return that didn't properly report the winnings. Is there such a thing to amend an amended return. My tax preparer file an amended return to add more winning and losses but did it wrong again and we got another letter from the IRS.

[@JasonDKnott]

Yes! If the amended return was incorrect, you can certainly file another amended return. It gets more complicated depending upon how much time has gone by since the original tax filing. The IRS has fairly strict rules on the statute of limitations with respect to amended returns.

[@jermcee]

I just got the w2G form from the casino. Will I need to wait until the end of the year when I file my next 1040 or can I add it to my existing tax return which is already filed and accepted?

[@robertburnham8694]

Same problem already filled .then the tax form showed up in mail .and how to know my tax burden on 1000 .???? Help please

[@kimberlywilliams3729]

Hello Jason, my question is if you win with your state online lottery games but never actually cash out the money just re-wager the winnings do you still calculate it the same way.

[@maewebster9377]

that’s a great question because I hit a jackpot for 1345, but I was done to 40.00.... I had put in 100.00 to start so I’m never sure if I should claim that 60 as a loss

[@jbamerican_usnavy]

In case of an audit do you have to keep all the losing scratch-off tickets?

[@LakshmiSilverqueen]

Though I reported Gambling winnings, also losses, still I had to pay Federal Taxes on the entire gambling winnings, despite the losses, at Okhlohoma, losses were not taken into consideration at all, I am a Texas resident, gambled at Winstar casino, Okhlohoma, why is it so??

[@Libra-Pisces]

Did you have multiple W2G? Did you enter them individually or did you add them all up as the sum of all the w2g winnings? I'm about to do the same, from texas, and did gamble at Winstar and received multiple w2g but they are all about $1200-1400 each. My losses are much more.

[@polaris911]

thank you, very helpful

[@JasonDKnott]

You're welcome!

[@GFDthatsMe]

I won $7620 this year. Taxed on a $7010 win @ $2240. I lost $1510. Can i deduct my $1510 from my $7620 to get 24% of the $1510 i lost back from the $2240 i already paid? This is the only income i made on my total income this year. So im guessing i cant get any money back because i didnt lose $13k (more than standard duduction)

[@tomcaviar7651]

That sucks. Why can’t you write off losses?

[@deea9020]

Do you have a video for Canadians getting the tax back form winnings?

[@Sophia_lazy]

What happen if you win a big jackpot one time and the same night you lost half of it how can you prove those losses if it was that one time only

[@luiscerda2132]

I was trying to offset my 4K winnings. I asked for a win loss statement come the casino in which I lost juts as much as I won. But the person who prepared my taxes in California claims I had to be a home owner to claim loss for casino wins.

[@JasonDKnott]

That is not technically correct. Gambling losses are deducted as an itemized tax deduction, so you need to itemize your tax deductions (Schedule A) in order to use them. You don't have to be a homeowner with mortgage interest and real estate taxes in order to itemize tax deductions, you just have to have enough other types of itemized deductions to exceed the standard deduction (charitable contributions, state income taxes, medical expenses, etc.)

[@phxman7519]

How do you file taxes from sweep coin redemptions from places like Chumba Casino and Luckyland Casinos? Both Chumba and Luckyland do not provide W2G forms. I did have winnings from both sites and losses on what I've spent on gold coins (not real money) to obtain additional free sweep coins (actual money to gamble from in order to receive real cash redemptions). Technically, the winnings are considered as Sweepstake prizes, but at the same time it is considered gambling. So how do I file these cash redemptions? Would I also report it as other income to? Also I do have sweep coin losses from what I gambled off of.

[@heavenlover58]

I played slot machine in DraftKings casino with my deposit $2.5 k won and lost and up and down and in my w2g my transaction was $63k won but didn’t I didn’t won anything and and reported my lost same 63 k but buy I have to pay tax almost 6 k for that ?

[@adam111ism]

brilliant thank you

[@JasonDKnott]

You're welcome!

[@altcoin5631]

Could you fit in one more ad?

[@jameskosydar5062]

How do I log a session at the casino if I start with $2000.00 entering casino, get a say $2000 jack pot w2g but loose that and $500 of my initial bankroll leaving with $1500.00, is it a net $2500 loss?

[@keithrutledge5603]

Love This Video...!!!!

[@JasonDKnott]

The gambling winnings and losses are reported separately. The IRS states that as a best practice you should have a ledger that shows how much was wagered, how much in proceeds was won or lost, the date of the wager, and the type of game played.

[@mikeparker6322]

What if I win $100,000 in one year and have a W2G. So in essence I can deduct $100,000 and zero tax consequence for gambling win?

[@maryalcantara9984]

Why you do not put the 18,600 of losses?

[@sriracha9305]

What if they give you a 1099 misc

[@mjelston5846]

Jason I have W-2G Forms from 2 States how to I input State I am not a resident from which I have loss more that jackpots won??

[@matrixcloudz]

Can you please help me I won 38,000$ on chumba online casino throughout 2022 and I spent 31,000$ do I have to itemize each single loss smh that would be impossible because the online casino doesn’t help with taxes smh

[@hidesertdave6166]

Hi Jason Would a won loss ledger from a casino be accepted by IRS?

[@PurpleOuchie]

Pretty sure that would be a yes

[@amandaserrano5934]

Do you get money back for reporting your won losses??

[@otwgamingpromotions]

Do you get your taxes back for 1099 withheld

[@JasonDKnott]

If you receive a Form W-2G with federal income taxes withheld in Box 4, you are able to claim those federal income taxes withheld on your Form 1040. It is similar to claiming federal taxes withheld on Form W-2 for your wages.

[@mikepark1219]

Tax laws are so skewed that you can win a $1,200 jackpot which can put you in the next tax bracket and end up owing ~$32K more taxes than without the $1,200 jackpot. If anyone is near the higher limit of their tax bracket then they should not play slots. I got put into the next tax bracket but only a 2% increase resulting in ~$4K more tax than without my jackpot.

[@sonnyJLG666]

What it I have multiple W-2G's? How would I add more than one?

[@ThuNguyen-no7zv]

I have a quesitION .. I played at the table game. I won 1600 and it showed only WIN/LOSS statement online from the casino . The casino did not send me w2g at all. Do i need to report it ? i asked my friends and they said i dont need to bc they dont have my social. I am confusing

[@reglara79]

I work at a casino and they only give you a w2 g when you win on slots or on tables if you win one of those pots where you put that extra bet to win the progressive if your first 2 cards are 21 suited or something like that. That 1600 you won wasn’t one off of one bet and if it was that means you had to bet 1600 to win 1600 so don’t worry about it.

[@mrcarlonetto]

My losses offset my wins, but why does it affect my federal return so much?

[@brianb2288]

Perhaps the added income from your wins is causing you to no longer be eligible for certain credits?

[@SlotstheMetaphysicalwa]

😢😢😢😢 what if I'm retired

[@billbosworth8369]

Where would you report losses on the year 2020 1040 form? My CPA show the winnings on Sch 1, line 8, but I can't see where he showed the losses.

[@JasonDKnott]

If you have gambling losses from separate sessions, those losses are an itemized deduction on Schedule A. In order to claim those losses, you'll need to itemize your tax deductions. Many taxpayers simply claim in the standard deduction, so often times those gambling losses are not used

[@kd9183]

How do I file these while also filing a 1099-k from PayPal for the same money but just processed/withdrawals from draft kings.

[@JasonDKnott]

If the amounts on Form 1099-K are related to gambling winnings and losses, then you can report them consistent with the procedures in this video. Gross gambling winnings are taxable, and you can deduct gambling losses if you itemize your tax deductions.

[@roger_rogers]

are you really jimmy kimmel?

[@hustlengrind916]

Are u using TurboTax basic or deluxe? Which one can u use that will allow u to report losses?

[@adam111ism]

Let’s say you were on one sports book and you had won five 500$ bets and you also had lost three 500$ dollar bets. Would that Sportsbook report you for having won 1000$ or 2500$?