Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I have won 340,000 dollars in 2015 gambling. All of it I won…

I have won 340,000 dollars...
I have won 340,000 dollars in 2015 gambling. All of it I won playing slots. I won one jackpot for 83,000 dollars. As I am preparing to do my taxes and reading the IRS rules for wins and losses I am totally confused as to what they want me to do to claim my losses. I have my bank statements where I have taken money out at the casino to play. I will have my win loss statement from my players card, however I did not use it during the first half of the year when I had most of my winnings. I just started using it because I knew I needed to start tracking things. I also do have a log of some of my play. Do I need to claim in my earnings wins that I didn't get a 1099 for ? Can I show these winnings being used to supplement my current business that I file a schedule C ? I just don't want to leave myself hanging and them not allow any of my losses. HELP
Show More
Show Less
Ask Your Own Tax Question
Answered in 9 minutes by:
10/23/2015
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,835
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Gambling winnings are fully taxable and you must report them on your tax return. You may deduct gambling only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses Schedule A as Otherr Miscellaneous Deduction" (line 28) that is not subject to the 2% limit.

In answer to your specific questions, yes to the first and no to the second.

https://www.irs.gov/taxtopics/tc419.html

Please let me know if you require further information and clarification.

Thank you and best regards,

Barb

Ask Your Own Tax Question
Customer reply replied 2 years ago
I understand that I have to itemize. I do that anyway, as my husband and I both are self employed. But where I am not certain as to what to do and I need details is on the claiming of the income. So what you are saying is ... If I go to the casino and I play 100 dollars and I win 400 and then I play that off and on the last 5 dollars I win 500 and then play that off and at 100 of that money I win another 700 I have to claim that 700 in addition to anything that I received a 1099 for? I am sorry I am so confused.
Customer reply replied 2 years ago
Also, are you familiar with California tax laws in relation to gambling winnings for state taxes. Are the rules different?

You claim the full amount of your gambling winnings on Line 21 (other income) of your 1040.

You deduct your losses on Schedule A.

For example, if your total gambling winnings for the year were $50,000, but you spent $60,000 to win the $50,000, you would itemize your losses up to the amount you won--$50,000. You would then be paying tax on $10,000.

I will address your question regarding CA in a few minutes.

Ask Your Own Tax Question

California excludes California lottery winnings from taxable income. Enter in column B the amount of California lottery winnings included in the federal amount on line 21 in column A. Make no adjustment for lottery winnings from other states. They are taxable by California. California and federal laws allow gambling losses only to the extent of reported gambling income. If you reduced gambling income for California lottery income, you may need to reduce the losses included in the federal itemized deductions on line 38. Enter these losses on line 41 as a negative number.

Ask Your Own Tax Question
Customer reply replied 2 years ago
Maybe I am not being clear.... I understand the deduction of the losses verses the wins. What I am not clear on as I read the IRS rules is do I claim money that I won during regular play that I was not given an 1099 for ? The 300 dollar wins the 150 dollar wins as they are also part of my losses if I play them back in the machine? Am I required to keep of log of all of these wins. I didn't hit the lottery I won a jackpots on slot machines. So what you are saying to me about California and lottery doesn't apply. What about slots in California? Thank you again for your patience

As I mentioned in my initial response, ALL gambling winnings are reportable, whether or not you received a 1099. Once you add up your total winnings, if you won $300 and then put back $150 to continue to play, your total winnings would be $300 and your total losses would be $150.

Make sense?

Ask Your Own Tax Question

Give me a few minutes to research lottery v. slot machine winnings as they pertain to CA.

Ask Your Own Tax Question

All gambling winnings are subject to taxation in CA EXCEPT CA lottery winnings. The procedure would be the same as for federal.

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,835
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified
Barbara and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 2 years ago
Okay,.... Yes makes sense LOL I am sorry I am being so thick headed. I feel like I am learning algebra all over again!!! So, just to be clear. If I have a log of whatever money I went into casino with and what ever I took from atm that day and I can to some degree... as there is really no way of calculating exacts if you win and then play it off in same session of play (could refer to my players card statement at end of year for win losses, and then use my 1099's, in addition to my wins if that is what I show from my card and my log book. Does that sound correct?

Perfect.

Ask Your Own Tax Question
Customer reply replied 2 years ago
Thank you for your patience you have been great!!!!!

It's been my pleasure.

Ask Your Own Tax Question

Thank you for the positive rating of my answer. It is most appreciated.

If you have any questions in the future, please feel free to specifically request me by putting "for Barb" in the subject line.

Best regards ***** ***** a great weekend!

Barb

Ask Your Own Tax Question
Was this answer helpful?
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,835
4,835 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Has the IRS made any ruling on the deduction of state
Has the IRS made any ruling on the deduction of state withholding tax and real estate taxes on Schedule A for 2018. Will there be a requirement to deduct withholding in total before moving to real est… read more
abci168
abci168
Principal
27 satisfied customers
Taxpayer amended 2015 tax return to report schedule C
Taxpayer amended 2015 tax return to report schedule C income. Note schedule C was never file on original return. Can taxpayer claim Sec 179 deduction on the amended return for 2015… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,374 satisfied customers
Can I submit the federal taxes with an itemize deduction and
Can I submit the federal taxes with an itemize deduction and the state with a standard deduction form? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
I'm confused when income should be on a schedule C and/or
I'm confused when income should be on a schedule C and/or reported on Schedule SE. I'm a musician that gets 1099 for gigs and teaching in addition to W-2s. I was told that expenses used on Schedule C … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,374 satisfied customers
Last year on schedule c, I took a 26,164 business loss on a
Last year on schedule c, I took a 26,164 business loss on a business. All at risk is checked. Can I carry that amount over to schedule c this year … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,374 satisfied customers
How would I list on a Schedule C tax form as an Uber Drive
How would I list on a Schedule C tax form as an Uber Drive 'Principal business or profession'?… read more
abci168
abci168
Principal
27 satisfied customers
New tax law —— I know that the law says: no to the
New tax law —— I know that the law says : no to the deductibility of Home Equity Loans. My question - if the funds are used exclusively or rental property and they can be traced or identified - any su… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Looking for tax law advise, California, I owe State and
I owe State and Federal Taxes for 2015 & 2016 and have worked out a monthly payment plan with the State but Federal is asking for a $6,100 lump sum by 1/28/18 before working out a monthly payment plan. If I cannot come up with the lump sum they will file a Notice of Federal Tax Lien that will be reported to the credit agencies. Is there any way to negotiate this? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a sole propriortor and file Schedule C. How will that
I am a sole propriortor and file Schedule C. How will that change under the new Tax Plan … read more
abci168
abci168
Principal
27 satisfied customers
As per the new tax law, the property tax deductions of 10000
As per the new tax law, the property tax deductions of 10000 is it per property or per tax payer per property?If both wife and husband file together can they claim 20000 towards one property or just 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Under the new Tax Cuts and Jobs Act, does a Schedule C sole
Under the new Tax Cuts and Jobs Act, does a Schedule C sole proprietor qualify for the 20% deduction of qualified business income or is this only available to S Corp shareholders & LLC's?… read more
Patrick Mullis
Patrick Mullis
Masters
18 satisfied customers
Tax law. California. 2016. I am a tax preparer... I have a
I am a tax preparer... I have a client that is under audit... he unfortunately paid approximately $200,000 to subcontractors CASH... the IRS is not allowing the deduction... is there a way we can prove it?… read more
Barbara
Barbara
Enrolled Agent
4,835 satisfied customers
The 2018 tax law will allow homeowners to deduct property
The 2018 tax law will allow homeowners to deduct property taxes and either income or sales taxes with a combined limit on these deductions being limited to no more than $10,000. What does this mean? w… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
14,120 satisfied customers
A law firm (which is a Schedule C filer) has gross income of
A law firm (which is a Schedule C filer) has gross income of 1,000,000 & Net Income 0f 280,000. In the tax reform just passed, there is a 20% deduction for law firms that have income less than 315,000… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,374 satisfied customers
Under the new tax plan, can a Schedule C proprietor still
Under the new tax plan, can a Schedule C proprietor still deduct her health insurance premiums on page 1 of Form 1040 & are there any medical expenses she can still deduct on Schedule A (if they excee… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,374 satisfied customers
On a schedule c who do you put as the proprietor if it is a
on a schedule c who do you put as the proprietor if it is a newspaper route and you are given a 1099-misc … read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
116 satisfied customers
Are you familiar with income tax laws on business and
Are you familiar with income tax laws on business and personal returns? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Small schedule c business donates fully depreciated
small schedule c business donates fully depreciated furniture to charity. They've been told that the FMV is $1,000. What is the deduction for contributed property? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x