How Much Money Have You Lost Gambling Reddit
After looking at my bank statement I have decided this is it, no more gambling. Over the past five years I have lost close to $100,000 with not a single thing to show for it. Most recent was a loan for $25,000 that I took out of my 401k. The loan was taken out 30 days ago and it’s now all gone. You’re allowed to deduct losses only up to the amount of the gambling income you claimed. So if you won $2000 but lost $5,000, your itemized deduction is limited to $2,000. You can’t use the remaining $3,000 to reduce your other taxable income. People far smarter than me have managed that feat. I’ve known 2 of them. One guy managed to destroy a $500,000 inheritance. He day traded away all but $12,000. That study found that 70 percent of day traders actually lose money. 'Only 12 percent of them have the potential to make money,' says Peter Hildreth, who works for the North American Securities.
Hi Guys,I seriously need help as I've been gambling over the last 10 years. It all started of like many others betting $100-200 at the casino and now I am doing $2,000 a spin on roulette.
I am sick of tired of this behavior. I've tried to quit so many time but the losses are too big for me to totally give up. I seriously don't know what to do. I did attended GA meeting a few time but it doesn't seem to help. Even attending these meeting I ended up lying to the counselor. The last 3 years I have built a successful business but now the cookie seem to crumble as I've been taking business money out for gambling. The problem here is the business has high taking but the outgoing is a lot too. I am blinded when using the money now and not be able to cover my expenses when end of the months comes around.
This week alone Day 1... won 5k. Day 2 lost 10k and Day 3 lost 17k. I am on the brink of breaking apart. I got no sense of money value here.
What breaks my heart the most is every morning, my wife (married for 1 year) wakes up early for work and she only earns 200-250 a day max. Here I am throwing money like an idiot. The current mess is so big now I am affair to tell her as this will 100% break our marriage. There is 5% I can cover all of this if everything stop at this instant.
But on the other hand my head keep saying DO NOT give up and beat the casino/sportsbet again. For example I keep thinking all I need is to obtain large sum of money to make MORE money.
I'm scared at this age I don't stop it will get worst. The numbers will just increase no matter how much money I earn. And if the stake is too high then the life might be on the line.
How Much Money Have You Lost Gambling Reddit 2020
Jack - Australia.
Gamblers understand the concept of win some, lose some. But the IRS? It prefers exact numbers. Specifically, your tax return should reflect your total year’s gambling winnings – from the big blackjack score to the smaller fantasy football payout. That’s because you’re required to report each stroke of luck as taxable income — big or small, buddy or casino.
If you itemize your deductions, you can offset your winnings by writing off your gambling losses.
It may sound complicated, but TaxAct will walk you through the entire process, start to finish. That way, you leave nothing on the table.
How much can I deduct in gambling losses?
You can report as much as you lost in 2019 , but you cannot deduct more than you won. And you can only do this if you’re itemizing your deductions. If you’re taking the standard deduction, you aren’t eligible to deduct your gambling losses on your tax return, but you are still required to report all of your winnings.
Where do I file this on my tax forms?
Let’s say you took two trips to Vegas this year. In Trip A, you won $6,000 in poker. In the Trip B, you lost $8,000. You must list each individually, with the winnings noted on your return as taxable income and the loss as an itemized deduction in Schedule A. In this instance, you won’t owe tax on your winnings because your total loss is greater than your total win by $2,000. However, you do not get to deduct that net $2,000 loss, only the first $6,000.
How Much Money Have You Lost Gambling Reddit Today
Now, let’s flip those numbers. Say in Trip A, you won $8,000 in poker. In Trip B, you lost $6,000. You’ll report the $8,000 win on your return, the $6,000 loss deduction on Schedule A, and still owe taxes on the remaining $2,000 of your winnings.
How Much Money Have You Lost Gambling Reddit Real
What’s a W-2G? And should I have one?
A W-2G is an official withholding document; it’s typically issued by a casino or other professional gaming organization. You may receive a W-2G onsite when your payout is issued. Or, you may receive one in the mail after the fact. Gaming centers must issue W-2Gs by January 31. When they send yours, they also shoot a copy to the IRS, so don’t roll the dice: report those winnings as taxable income.
Don’t expect to get a W-2G for the $6 you won playing the Judge Judy slot machine. Withholding documents are triggered by amount of win and type of game played.
Expect to receive a W-2G tax form if you won:
- $1,200 or more on slots or bingo
- $1,500 or more on keno
- $5,000 or more in poker
- $600 or more on other games, but only if the payout is at least 300 times your wager
Tip: Withholding only applies to your net winnings, which is your payout minus your initial wager.
What kinds of records should I keep?
Keep a journal with lists, including: each place you’ve gambled; the day and time; who was with you; and how much you bet, won, and lost. You should also keep receipts, payout slips, wagering tickets, bank withdrawal records, and statements of actual winnings. You may also write off travel expenses associated with loss, so hang on to airfare receipts.
How Much Money Have You Lost Gambling Reddit 2019
Use TaxAct to file your gambling wins and losses. We’ll help you find every advantage you’re owed – guaranteed.