Tax Question

[Port Conway Lane]

I won $5,000 in a free online contest. Can I write off $1,800 in gambling losses against that? Because the contest was free I thought I couldn't but called h&r block and the guy said I could but it wouldn't be worth it unless I had enough itemized deductions on schedule A blah blah blah. I have nothing to itemize and didn't quite understand what he was trying to tell me. Any tax experts out there ? Thanks

[Scav]

Originally Posted by Port Conway Lane

I won $5,000 in a free online contest. Can I write off $1,800 in gambling losses against that? Because the contest was free I thought I couldn't but called h&r block and the guy said I could but it wouldn't be worth it unless I had enough itemized deductions on schedule A blah blah blah. I have nothing to itemize and didn't quite understand what he was trying to tell me. Any tax experts out there ? Thanks

You can write off the $1800 if it is larger then the standard deduction, which I think is $3200 this year. So unless you have an additional $1400, you might be SOL. It also depends on if they kept money for taxes up front, which I am guessing the didn't?

Quick question and I am not saying you can do this or that, but did you win this money from a US based company or off shore?

What I would do is put all your information into Turbo Tax and go through the steps and let it plan it out for you. It is a very good tool.

--Accountant in training

[SniperSB23]

Originally Posted by Scav

You can write off the $1800 if it is larger then the standard deduction, which I think is $3200 this year.

What I would do is put all your information into Turbo Tax and go through the steps and let it plan it out for you. It is a very good tool.

--Accountant in training

Really? I was under the impression I couldn't write off losses from gambling from winning a free contest. Of course last year wound up being the year I was actually up on the year so I can't claim losses anyways. Naturally I'll wind up with big losses this year and won't win any contests to write them off against.

[Scav]

Originally Posted by SniperSB23

Really? I was under the impression I couldn't write off losses from gambling from winning a free contest. Of course last year wound up being the year I was actually up on the year so I can't claim losses anyways. Naturally I'll wind up with big losses this year and won't win any contests to write them off against.

I kept my tax textbook for this very reason, tax law is really hairy.

I'll re-look at it in a couple minutes, but it is gambling winnings versus gambling losses. How you win shouldn't matter. Give me a couple minutes

[SniperSB23]

Originally Posted by Scav

I kept my tax textbook for this very reason, tax law is really hairy.

I'll re-look at it in a couple minutes, but it is gambling winnings versus gambling losses. How you win shouldn't matter. Give me a couple minutes

But does it qualify as gambling winnings if it was a contest free to enter? I think that is the problem with it.

[Scav]

Originally Posted by SniperSB23

But does it qualify as gambling winnings if it was a contest free to enter? I think that is the problem with it.

it might be considered a 'prize' which throws things all out of whack...

[Scav]

From my textbook,

"The following expenses and losses are deductible on line 27 of Schedule A as Other Miscellaneous Deductions.

-Gambling losses up to the amount of gambling winnings"

Researching the winnings end of it right now....not in the same spot of book

[Holland Hacker]

Originally Posted by Scav

--Accountant in training

Don't do it!!

Just curious why do you want to be an accountant? I often regret the decision. But then at other times I actually enjoy what I do.