1. Gambling Loss Deduction 2021 Irs Filing
2. Kentucky Gambling Loss Deduction
3. Gambling Deduction Irs
4. Irs 2021 Deductions

If you gamble, you may not feel like as much of a winner come tax season next year. Changes in the State of Oklahoma tax law a limiting how much you can write off as a 'loss.'

• Gambling loss deduction Gambling losses and expenses are deductible only to the extent of gambling winnings. So, spending $100 on lottery tickets isn’t deductible — unless you win, and report, at.
• 2020 © Standard-Deduction.com. This is a private website that is NOT affiliated with the U.S. Government and Internal Revenue Service (IRS). Government agencies have.

'I see this for Oklahoman's as like the gambling penalty,' said Eileen Robinson, the head accountant at Gardner's Tax Services Inc.

The IRS will only let you deduct losses to the extent that you win. For instance, if you lose $3,000 on one trip to the casino and win $2,100 on another trip in the same year, you can write off $2,100 in losses to offset the $2,100 in winnings, leaving you with a total of $900 of taxable gambling income. Gambling losses. Don’t get confused by the name here. Gambling loss deductions mean that you can only deduct what you won. So, if you spent $200 on lottery tickets and didn’t win, you can’t deduct that. But, if you did win then your winnings can be claimed.

In previous years, you could write off your total gambling losses in your adjusted income which is what you can still do for federal taxes, but for Oklahoma state taxes, you can't do that anymore.

'For federal you have to show in the income on the 1040, your schedule 'A' is where you take your itemized deductions and that's where you right off your gambling losses,' Robinson said. 'In Oklahoma, they limited the amount of itemized deductions you can take, you can take all of your donations but it limits the rest of it to that 17,000.'

This means you'll have to pay income tax for the total amount of big jackpots.

Gambling Loss Deduction 2021 Irs Filing

In the past, if you lost money while gambling, then won, you could deduct those losses from your winnings then only pay the tax on the difference.

'Now when you win that money you're going to have to pay the taxes whether you out that money back into the machine or not,' Robinson said.

Something that Robinson says has been an unpleasant surprise for her clients this year.

'They're in shock, most of them didn't know and of course not until we got ready to do their taxes,' Robinson explains.

It may be too late to make the adjustment this year, but there are ways to prepare for the tax change next season.

Kentucky Gambling Loss Deduction

'I'd say 5% of all their winnings needs to be set aside to send in' Robinson said. 'So lets say if you won something you need to make sure you set back enough to be able to pay the taxes for the state and try not to plug that into the machine.'

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Gambling Deduction Irs

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Irs 2021 Deductions

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