Re: Reporting Gambling Winings
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How are you reporting it? Because th IRS wants a blow by blow, session by session breakdown. They strictly say that netting your gambling for the year is not the way to do it. So if you win $100,000 and lose $100,000 over the course of the year, you owe taxes on the $100,000 before any deductions are applied. Not cool.
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That is unequivocally wrong. Your AGI goes up 100k, but you deduct the 100k on Schedule A. You're not directly increasing your tax burden as it is calculated after your deductions are taken out. However, you do lose the standard if you weren't already itemizing plus all the deduction phaseouts and AMT assocaited with a higher AGI.
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