I recently started using TurboTax to file my taxes and I understand that gambling losses can be declared to offset any winnings. However, I’m not sure how to go about this. I have a mixture of losses from casino games, online gambling, and lottery tickets. Is there a specific process or any essential details I should follow when declaring these losses? Do I need to get any reports from the casinos or online gambling sites? And also, is there a limit to how much I can declare as losses? I am unsure of the exact steps to take in the TurboTax interface to input this information correctly. I would really appreciate it if anyone with experience could walk me through this.
Sure, I can help with this. First, you should gather all your receipts, tickets, statements, and other documents that show your gambling winnings and losses. This is what you will need to provide just in case the IRS asks for more information. When you’re in TurboTax, you will enter your winnings in the Income section and choose W-2G as the source of your income. From there, you will be guided on what information to input based on the W-2G form. As for your losses, you will input this in the Deductions & Credits section under Gambling Losses. This can only be claimed if you’re itemizing your deductions and not if you’re taking the standard deduction. Keep in mind that you can only deduct your losses up to the amount of your total gambling winnings. If your losses are more than your winnings, you’re out of luck. You may not deduct more than you won. Always remember that rules may vary depending on your situation and the tax year so it’s still best to consult with a tax expert if you’re not sure.
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