WIN/LOSS STATMENT

[MGC94]

if I have a client who won w2-g $20,000 

I have a win loss statement loss in the bottom right corner (2,433.92) 

is that all I can write off?

Or is the real loss $22,433.92 and I can write off the whole $20,000? 

[jeffmcpa2010]

The 20K income will end up as income on schedule 1 after you enter the W2-G.

The losses of 22,433 go to schedule A line 16 other deductions, but are limited to reported winnings, so you would actually enter $20,000 on the schedule A.

https://www.irs.gov/instructions/i1040sca#en_US_2021_publink100073879

[TaxGuyBill]

The taxes for gambling is dangerous.

They have only received one W-2G, but I almost guarantee they won something more than that one time. 

So you may think twice about only reporting one-out-of-many wins, but then trying to report all losses.

[MGC94]

right. But is the loss only $2,243 or is the loss really $22,422? since the bottom of the W/L in (2,243) can you only write off on the Sch A 2,243 or I can do the whole $20,000 ?

[MGC94]

I do have people with multiple w2g. What I am confused about is the W/L statement. 

if bottom right-hand corner is (5,000)

Coin in 15,000

coin out 10,000

w2g 10,000 

is the loss only $5,000? or I can write off the whole $10,000 against the w2g? 

[jeffmcpa2010]

Maybe talk to your client and find out how much he really won and how much he really lost?

[TaxGuyBill]

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@MGC94 wrote:

right. But is the loss only $2,243 or is the loss really $22,422? since the bottom of the W/L in (2,243) can you only write off on the Sch A 2,243 or I can do the whole $20,000 ?

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What are the other numbers on that statement?

[MGC94]

They all claim they lost everything they won. I thought whatever was in the bottom of the W/L statement in the (     ) was all that could be put down as a loss. I guess that just means they lost more than they won? and can write off the whole amount won? 

[TaxGuyBill]

This is just an example:

Let's say they have a W2-G for $20,000, but their actual cumulative total winnings are $50,000 (each individual win counts, even though there is not a W2-G for the smaller amounts), and their cumulative total losses are $53,000.

In that example, you are supposed to report $50,000 of gambling income, and then you enter $50,000 of gambling losses on Schedule A.