Ask The Tax Men (previously "was using Turbotax" thread)

KingofNicotine · Jan 28, 2010

And I won $2,500 on gambling last year. When I enter that it reduces my return by around $400. What a joke.

Here's the thing, I lost just as much if not more than that on gambling.

I enter that I lost $2,500 and the refund amount does not change. You would think that since you lost money they would not charge you for it.

Willie99 · Jan 28, 2010

KingofNicotine said:
And I won $2,500 on gambling last year. When I enter that it reduces my return by around $400. What a joke.

Here's the thing, I lost just as much if not more than that on gambling.

I enter that I lost $2,500 and the refund amount does not change. You would think that since you lost money they would not charge you for it.

I'll PM you over the weekend and see if I can help

too lazy right now, too busy the next two days

I'll send you my cell, that'll be easier for some Q & A

KingofNicotine · Jan 28, 2010

Should I just go to a pro and get this done. Doesn't seems like Turbo Tax takes gambling losses into account.

barman · Jan 28, 2010

King O'...Willie99 is a longtime professional tax acct...He does our federal returns personally.

Get in touch with him privately

KingofNicotine · Jan 28, 2010

I will, thanks.

skoda · Jan 28, 2010

willie 99

I paid off my Student Loan last year (2009) and received notice that I paid $1538.98 interest to the US Department of Education Question is.....

Can I claim as a credit on my 1040?

TY~~~~~~~

Samhain · Jan 28, 2010

Skoda, yes can claim that interest paid on Schedule A.

skoda · Jan 28, 2010

The Standard Deduction is greater for me I don't itemize so I guess there isn't any other way i can claim this unless I Itemize. True? Thanks........

Sammy439 · Jan 28, 2010

skoda said:
The Standard Deduction is greater for me I don't itemize so I guess there isn't any other way i can claim this unless I Itemize. True? Thanks........

True unless you call yourself a professional gambler. Then you can net I believe and deduct things like internet bills and things related to your gambling profession. I'm not sure what the requirements of this are but it may also flag you. Somebody else can elaborate on this I'm sure.

If you do file as a pro gambler you file it on schedule C.

Samhain · Jan 28, 2010

You can only deduct losses to winnings.

Willie99 · Jan 28, 2010

skoda said:
I paid off my Student Loan last year (2009) and received notice that I paid $1538.98 interest to the US Department of Education Question is.....

Can I claim as a credit on my 1040?

TY~~~~~~~

student loan interest is deductible from gross income in arriving at adjusted gross income, and not as an itemized deduction. Thus, assuming your income isn't too high, it is deductible even if you don't itemize.

FYI, if you purchased a vehicle in 2009, the sales tax paid (or similar type fees) are deductible even if you don't itemize. Same goes for real estate taxes paid. You would use Schedule L to deduct such.

Willie99 · Jan 28, 2010

KingofNicotine said:
And I won $2,500 on gambling last year. When I enter that it reduces my return by around $400. What a joke.

Here's the thing, I lost just as much if not more than that on gambling.

I enter that I lost $2,500 and the refund amount does not change. You would think that since you lost money they would not charge you for it.

gambling losses are deductible to the extent of gambling winnings as a miscellaneous itemized deduction on Schedule A. The deduction is not subject to the 2% of AGI limitation imposed on most other "miscellaneous" deductions.

D2bets · Jan 28, 2010

Willie99 said:
gambling losses are deductible to the extent of gambling winnings as a miscellaneous itemized deduction on Schedule A. The deduction is not subject to the 2% of AGI limitation imposed on most other "miscellaneous" deductions.

So to take a Schedule A itemized to deduct gambling losses I guess then you;d have to specifically note where the income is reported that it is from gambling winnings?

Willie99 · Jan 28, 2010

D2bets said:
So to take a Schedule A itemized to deduct gambling losses I guess then you;d have to specifically note where the income is reported that it is from gambling winnings?

gambling winnings are reported on Form 1040, line 21, a catchall for "other income"

if you're asking me does the IRS match-up those numbers, I don't know, haven't try to abuse that one. My best guess is that it may take an audit to catch an inaccurate deduction. Meaning most deductions would probably go through unchallenged. Especially if you have some entry on line 21 and you deduction is so large that it's not a red flag.

if you asking me about the process using software like Turbo Tax, IDK

jeckll · Jan 28, 2010

Willie--
Can you point me to a W4/Withholding calculator that can take into account if I'm going to quit my job halfway through the year? I'm getting a ton of tax withheld that I should get back in a refund because I'm only going to make about half my salary this year. But I don't want to wait for a refund!

Willie99 · Jan 28, 2010

jeckll said:
Willie--
Can you point me to a W4/Withholding calculator that can take into account if I'm going to quit my job halfway through the year? I'm getting a ton of tax withheld that I should get back in a refund because I'm only going to make about half my salary this year. But I don't want to wait for a refund!

I can't, I have my own tax planning software for such calculations. I would suggest that you simply calculate your anticipated 2010 tax liability using what you think your 2010 income will be. Extrapolate from your check stub.

Then tell your employer to withhold a flat amount, using a new W-4 form.

KingofNicotine · Jan 28, 2010

Willie99 said:
gambling losses are deductible to the extent of gambling winnings as a miscellaneous itemized deduction on Schedule A. The deduction is not subject to the 2% of AGI limitation imposed on most other "miscellaneous" deductions.

Thanks. In other words Turbo Tax is right. It won't matter if I win $2500 and lose $10,000, they'll still deduct money from my return for the $2500 that I won.

What a waste. This'll probably deter me from gambling ever again.

oldmanTED · Jan 28, 2010

You would have to report the gambling winnings if you receive a W-2G from the source of your $2500 winnings. If you happen to itemize deductions on Schedule A, you can deduct your losses up to the $2500 if you've kept decent records. It is unlikely the IRS will audit you for claiming $2500 in losses to offset your $2500 winnings. You place your losses on Schedule A, Line 28 "Other Miscellaneous Deductions". The net to your Adjusted Gross Income becomes zero and you pay no tax on the winnings.

KingofNicotine · Jan 28, 2010

So I should ask sportsbook.com for a W-2. Do they even do that?

Willie99 · Jan 28, 2010

KingofNicotine said:
So I should ask sportsbook.com for a W-2. Do they even do that?

have they reported earnings to you on a w2-G? if not, how did you come up with the $ 2,500?

Ask The Tax Men (previously "was using Turbotax" thread)

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