How to offset gambling winnings from loses for tax filing purpose?
I have won $2000 in casino in California. Casino gave me a w2g form for filing tax purpose. I know that if we claim loses on tax return, we only can claim $2000 loses under itemized deduction. In 2018, the standard deduction is $12,000, then claiming that gambling loses doesn't work for my case because i have nothing to claim under itemized deduction. In this case, I end up paying tax if I file w2g form. But the truth was after I won those money, I continued playing and all lose back to casino including some of the money I withdraw from ATM, too. In this case, I didn't earn any penny from Casino at all. Do I still need to file it and pay the tax?
Can someone help me with my case? (I hope I don't have to pay the tax for the money I didn't bring home at all) p.s. this is how I won this $2000. I was using my own money to play the slot machines. When i almost finished losing all of my money Iike about $ 2200 or something, the game suddenly gave me a big bonus, so I won that $2000.
Answers
Max Hoopla
There is nothing you can do.
Pascal the Gambler
You still have to file it and pay tax, even if you foolishly went and lost it.
StephenWeinstein
You still need to file and pay.
Eva
No offset. You have to pay the tax. Increased standard deduction will partially offset it. You have to file the W2G.
Judy
Yes you have to file the W2G and sorry, but no you can't claim the loss when you don't itemize.
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