How to report Gambling winnings & losses on taxes - reporting apps separately?
Title: How to report Gambling winnings & losses on taxes - reporting apps separately? 1 In 2024, I went a bit crazy with sports betting apps now that they're legal in my state. I've got a situation where one app shows I've won about $30,000 in total this year, but another app shows losses of around $20,000. I'm confused about how to report this on my taxes. I don't think I just claim the net amount of $10,000, right? I've been reading some stuff online about having to do itemized deductions for the gambling losses specifically? I usually just take the standard deduction but I'm not sure what's best here. Can anyone advise on how to properly file these gambling wins and losses for the upcoming 2025 tax season? Also wondering roughly how much I might end up owing the IRS when all is said and done. I didn't have any withholding on the winnings so I'm a bit worried about a big tax bill hitting me all at once.
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QuantumQuester
8 You're right to be concerned about this! The IRS treats gambling winnings and losses differently. Here's what you need to know: Your $30,000 in winnings must be reported as income on your tax return (Form 1040, Schedule 1). Gambling winnings are fully taxable and must be reported regardless of amount. For your $20,000 in losses, you can only deduct them if you itemize deductions on Schedule A. You cannot take the standard deduction AND deduct gambling losses. Also, you can only deduct losses up to the amount of your winnings, so in your case, up to $20,000. If you usually take the standard deduction, you'll need to compare which gives you the better tax benefit - the standard deduction ($13,850 for single filers in 2024) or itemizing (which would include your $20,000 gambling losses plus any other eligible deductions like mortgage interest, charitable contributions, etc.).
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QuantumQuester
•15 So wait, if I understand - if I don't itemize, I get taxed on the full $30k? But if I do itemize, I lose the standard deduction but can subtract the $20k in losses? How do I figure out which is better for me?
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QuantumQuester
•8 You'll be taxed on the full $30k of winnings regardless of whether you itemize or take the standard deduction. The question is what deductions you can take to reduce your overall taxable income. If you itemize, you can include the $20k in gambling losses (along with other deductible expenses you might have like mortgage interest, charitable donations, etc.). If your total itemized deductions exceed the standard deduction amount ($13,850 for single filers), then itemizing would save you more in taxes.
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QuantumQuester
12 I was in your exact situation last year! I had about $25k in winnings across DraftKings and FanDuel but then almost $18k in losses. I tried figuring it out myself, but kept going in circles. Finally I used https://taxr.ai to help me sort through everything. Basically you upload your gambling records from each app and it pulls everything together for you. The tool helped me figure out that in my case, itemizing was the way to go because I also had a bunch of charitable donations and mortgage interest that pushed me well over the standard deduction. It also helped me organize everything in case of an audit - apparently the IRS watches gambling winning/loss claims pretty closely!
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QuantumQuester
•3 Wait does this actually work? I've got wins/losses spread across like 4 different apps and honestly I've been avoiding even thinking about how to handle it. Does the app give you like actual tax forms or just advice?
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QuantumQuester
•18 I'm a bit skeptical here... how does this compare to just using TurboTax or something? I'm in a similar situation but have been using a tax prep service for years. Do they handle the state tax implications too? Some states treat gambling differently.
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QuantumQuester
•12 It definitely works! It doesn't replace your tax software, but it organizes all your gambling activity before you input it into TurboTax or whatever you use. You just upload the year-end statements from each app and it consolidates everything, tracks your sessions, and formats it exactly how the IRS wants to see it. For state taxes, it does handle the different requirements. My state has some weird rules about gambling deductions and the tool flagged those differences for me. Saved me a ton of headache compared to trying to piece it all together manually from multiple apps.
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QuantumQuester
3 Just wanted to update - I took the advice and tried https://taxr.ai last weekend for my gambling mess. I had no idea I needed to track my gambling by "sessions" but apparently that's a thing the IRS looks for. The tool organized everything by date and session which was honestly something I would have completely messed up on my own. It confirmed I should itemize since my gambling losses plus my other deductions came out to more than the standard deduction. Now I actually feel prepared for tax season instead of dreading it. Also gave me peace of mind knowing I'm not accidentally doing something that might trigger an audit flag.
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QuantumQuester
7 If you end up owing a big tax bill and can't get through to the IRS to set up a payment plan (which is likely - I was on hold for HOURS), check out https://claimyr.com - they got me connected to an actual IRS agent in under 45 minutes. There's a demo video here: https://youtu.be/_kiP6q8DX5c I had a similar gambling situation last year and owed way more than I expected. Needed to set up a payment plan but couldn't get through on the IRS lines. The Claimyr service had me talking to someone who helped set up my payment plan quickly. Definitely worth it when you're staring down a big tax bill and need to talk to a human ASAP.
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QuantumQuester
•4 How does this even work? I thought the IRS phone lines were just perpetually jammed. Are they somehow jumping the queue or what?
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QuantumQuester
•18 Sounds too good to be true. There's no way to skip the IRS phone queue - I've tried everything. You probably just got lucky with timing or something.
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QuantumQuester
•7 The service basically uses an algorithm to call the IRS repeatedly using optimal timing patterns and then connects you when they get through. It's not "skipping" the line exactly, more like having someone wait in line for you and then ping you when they reach the front. They don't have special access to the IRS or anything like that. They're just really good at navigating the phone system and timing the calls for when wait times might be shorter. I was skeptical too but when you're facing penalties and interest on a big tax bill, spending a bit to actually get through is worth it.
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QuantumQuester
18 OK I stand corrected. After waiting on hold with the IRS for nearly 3 hours yesterday and getting disconnected, I bit the bullet and tried the Claimyr service. Got connected to an IRS agent in about 35 minutes. The agent helped me understand how the gambling winnings would affect my quarterly estimated payments too, which I hadn't even thought about. For anyone else with gambling wins/losses: apparently you should be making estimated tax payments on big winnings throughout the year - something else I didn't know and might have gotten penalized for. The IRS actually waived my underpayment penalty since I'd never had gambling income before.
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QuantumQuester
9 One thing nobody has mentioned: KEEP ALL YOUR RECORDS! The IRS requires you to keep a diary or log of all your gambling activities if you're claiming losses. This includes: - Date and type of gambling - Name/location of gambling establishment - Names of other people with you while gambling (if applicable) - Amounts won and lost If you get audited without these records, your loss deductions can be disallowed!
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QuantumQuester
•1 Oh crap, I definitely don't have all that info! The apps show my bets but not who I was with or anything. Is that really required? Do the statements from the betting apps not count as sufficient records?
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QuantumQuester
•9 The app statements are a good start and will show your betting activity, but the IRS guidelines technically ask for that additional information too. In practice, having detailed statements from the apps showing each transaction with timestamps is extremely helpful and covers the most critical parts. For online gambling, the "who you were with" part is less relevant, but keeping track of your sessions is important. Group your gambling activities by date or session rather than just showing a year-end total. This shows the IRS you're tracking your activity properly.
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QuantumQuester
14 Also worth mentioning - gambling winnings are subject to different withholding requirements. If you win over certain thresholds (like $5,000 in a lottery), taxes should be withheld immediately. But for most online betting apps, they don't withhold taxes automatically, which is probably why you're in this situation.
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QuantumQuester
•21 I got a W-2G from a casino when I hit a $1,200 jackpot on a slot machine, but nothing from any of my sports betting apps even though I had some big wins. Is that normal or should I be getting tax forms from them too?
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Carmen Ruiz
•Sports betting apps typically only issue W-2G forms for winnings that meet specific thresholds - usually when you win over $5,000 AND the winnings are at least 300 times your wager. So if you bet $10 and won $3,000, you wouldn't get a W-2G even though it's a nice win. But you're still required to report ALL gambling winnings on your tax return, regardless of whether you receive a form or not. The apps should have year-end statements available in your account that show your total activity for tax purposes.
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