Will I owe taxes for online gambling..
I played online gambling this year, my losses are more than my wins. I also have a child. Will I owe taxes or will I still get any tax refund back?
Answers
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Hi CinderBaby,
You're describing a gambling loss which you won't owe taxes on. If you itemize your deductions, you can claim the loss if you've kept good records of the gambling wins and losses. If the child was born this year, you can likely claim the child tax credit. Without any more information about filing status, income or otherwise, I cannot say whether you'll owe or get a refund. My guess is that unless your income has changed a lot from last year, you can expect a similar result as when you filed your 2023 taxes.
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That's a great question. Gambling winnings are taxable. You will typically receive a form W-2G reporting your winnings, this will be included on the 1040. Gambling losses may be deductible, up to the amount of winnings. However, for the losses to be deductible you will need to Itemize and not take the standard deduction. If itemizing deductions is more favorable, the losses will be deductible.
There are various factors that should be considered when determining if there is a refund or balance due. You whole tax situation is involved including all income of wages, gambling income etc plus any other deductions. At this time it is not possible to know the outcome.
For more information we recommend reviewing the following IRS link:
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What kind of specific records of wins and losses? I would like to try to make sure I have what I need when I file, I do my own taxes since I have just minimum to file - no assets, 401k, mortgage, etc.
I know the online casino will issue a W-2G, I have read. My income has not chnaged much from last year filing, I am still in the same tax bracket. 71k/year and I claim "0" so they take out the most taxes per pay check. Head of Household filing status.
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You should be able to access a transaction record in your online account with the casino that will show all wins/losses. If the losses plus other qualified deductions (charitable, certain interest paid, local taxes, etc.) exceed the standard deduction of $21,900 for head of household, you can itemize the losses. Otherwise, you can only take the standard deduction
