Declaring Casino Losses

[jwgoldst]

What is the name of your state? Illinois

Hi, My name is Josh and I'm a college student at Indiana University. I have lost approximately $4800 in online casino's in the last 6 months. I need to know if there is any way that I can declare this loss so that I can hopefully get a larger tax return. My total income was about $5000 for the year(summer job). If I can prove I lost the money there by obtaining the casino's records, is this possible and how much may I expect to get back? Thanks, I really appreciate any input.

Josh

 

[Snipes5]

You may deduct gambling losses to the extent of gambling winnings, on Schedule A if you itemize, which you will not need to do. You are unlikely to owe any tax, unless your parents are claiming you, but you can't get any more back than what you paid in, unless you are over 25 or have children.

So how did you survive on $200 for the year? If you claim your own personal exemption, I am sure the IRS will want to know.

Snipes

 

[jwgoldst]

Tax Deductions

Well I had some money saved from previous years and my parents still support me, so even though I lost a lot, I don't spend any money really, other than my misadventures in the casino. So if I lost $4800 or so, then the taxes I paid out throughout the year on the $5000 that I made would be refunded to me? Also, you said that it depends on my winnings...throughout my gambling spree, I won a few times, however, I came out very much in the red by the end. Please let me know what you think about the refund and also how do I prove my losses, get the records from the online casino? Thanks
Josh

 

[Snipes5]

Go back and read what I said the first time. You can only claim gambling losses up to the amount of gambling winnings.

You're unlikely to be paying much tax, if at all. Getting money back will have absolutely nothing to do with your gambling. Go see a tax professional, bring proof of your losses and also account for your winnings, and make sure you tell them that your parents are claiming you.

Snipes

 

[jwgoldst]

So would you recommend that I pursue a larger refund or would it not make much of a difference? Total taxes taken from my paychecks this summer total about $550. What do you recommend, and if this is enough info, do you know about how much I could possibly get back? Thanks
Josh

 

[Snipes5]

Claiming your gambling losses won't get you a larger refund.

I recommend you see a tax professional, since this is the third time I am saying the same thing, and you don't seem to be getting it.

A tax pro can sort it all out, so you don't have to.

Snipes