Tax Time again, Questions

I guess it is a good problem to have, but I won too much last year! Trying to find losses and coming up short. Where did all the money go then??

The question is, can I use my DH losses to help offset my wins? I see on some CPA's websites that I can. Just wondering how some of you combine your win/lose gambling monies.

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Originally Posted by michelelovesvegas

I guess it is a good problem to have, but I won too much last year! Trying to find losses and coming up short. Where did all the money go then??

The question is, can I use my DH losses to help offset my wins? I see on some CPA's websites that I can. Just wondering how some of you combine your win/lose gambling monies.

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Unless you file as professional gambler status, which requires a bunch of extra paperwork, you have to show your w2g's as ordinary income. Your losses have to be shown on your schedule A and you can only offset up to the extent on your total w2g winnings. If you have enough other deductions on your schedule A then it will kind of wash itself out. If not you will be unfairly taxed on some of your winnings. IMO if you have for instance $20,000 in w2g's you should be able to show win/loss statements from the properties were you play to prove to the IRS that your losses exceed your gains but they won't let you do that.

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Originally Posted by seemoreroyals

Unless you file as professional gambler status, which requires a bunch of extra paperwork, you have to show your w2g's as ordinary income. Your losses have to be shown on your schedule A and you can only offset up to the extent on your total w2g winnings. If you have enough other deductions on your schedule A then it will kind of wash itself out. If not you will be unfairly taxed on some of your winnings. IMO if you have for instance $20,000 in w2g's you should be able to show win/loss statements from the properties were you play to prove to the IRS that your losses exceed your gains but they won't let you do that.

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I understand that, just wondering if married filing joint you can add up both spouses wins/losses. Can my husband's losses be added to mine? I had 14 HP's plus the slot tournament win. My losses are very small from last year.

You need to talk to whoever does your tax return Michele. Unless it has changed since last year all w2g wins are treated as ordinary income. So you can total them up and show them as ordinary income on your return. The corresponding losses whether they are yours or your husbands have to be accounted for on your schedule A. It's not fair but at least they are not making us pay taxes on all of the free rooms, food, travel reimbursement that we get. At least not yet anyway.

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Originally Posted by seemoreroyals

You need to talk to whoever does your tax return Michele. Unless it has changed since last year all w2g wins are treated as ordinary income. So you can total them up and show them as ordinary income on your return. The corresponding losses whether they are yours or your husbands have to be accounted for on your schedule A. It's not fair but at least they are not making us pay taxes on all of the free rooms, food, travel reimbursement that we get. At least not yet anyway.

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Unfortunately we live in Georgia so CPAs here are not really up on gambling laws. (and I am stuck with my husbands business CPA who thinks gambling is one of the deadly 7 sins) Even some places I have read, they say you must claim comps as income and keep a journal of your 24 hour sessions. I know I am going to get taxed on the ordinary income, just trying to deduct as much loss as possible. Thanks for your help.

If married filing jointly, you add all w2s on first page under other income. On detail of expenses o schedule a add all losses of bothe you and your husband


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Originally Posted by hccj

If married filing jointly, you add all w2s on first page under other income. On detail of expenses o schedule a add all losses of bothe you and your husband


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Thanks, my husband has some losses that will help me out!

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Originally Posted by michelelovesvegas

Thanks, my husband has some losses that will help me out!

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yup, if filing jointly you add you and your DH W2-g's and add both your losses together to deduct the total. Had this issue last year and my accountant made sure she was updated on the rules.