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Ballpark: I have $ 420,000 US dollars in gambling wins but…

Customer Question
Ballpark: I have...

Ballpark: I have $ 420,000 US dollars in gambling wins but win/loss statement says I have a loss of $150,000. How do I calculate taz taxes ?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

What else do you need?

Accountant's Assistant: Is there anything else important you think the Accountant should know?

I don't really have any other deductions

Submitted: 6 months ago.Category: Finance
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Answered in 18 minutes by:
1/5/2018
Financial Professional: Patrick Mullis, Certified Public Accountant (CPA) replied 6 months ago
Patrick Mullis
Patrick Mullis, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 21
Experience: Capital Accounting Analyst / Financial Analyst at Norfolk Southern
Verified

In general you can only deduct losses up to your winnings and only if you itemize deductions (subject to any limitation thresholds -roughly 2% of earnings). So if you itemize and deduct losses (subject to any limitation thresholds -roughly 2% of earnings) you still owe on winnings net of that. Simple Example: 420,000 -150,000 would approximately be on your taxes as 420,000 winnings - a deduction of (150,000 - (8,400 or 2% of 450K). Hope this helps if so please rate me 5 stars. Thanks and good luck.

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Customer reply replied 6 months ago
Checking for understanding: would the approximate tax liability be $8400? Thanks!
Financial Professional: Patrick Mullis, Certified Public Accountant (CPA) replied 6 months ago

No you have don't get to deduct 8400 of the 150,000 loss you only get to deduct 141,600 because 2% of your earnings is not deductible.

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