Using Turbo Tax when you enter 1099's it enters them into gross
gambling income. I'm a little puzzled because the IRS is disallowing
writing your losses again 1099 wins. I can't believe Turbo Tax would
make this error. I have used Turbo Tax for many years and it is a
flawless program. I am inclined to contact them and ask them about this
before I file.
Turbo Tax question
<<I'm a little puzzled because the IRS is disallowing
writing your losses again 1099 wins.>>
Many many people DO add their gambling 1099s to their W-2G's (or include them in their session wins). Only a very few are sent a IRS letter audit on issue and most are settled with an explanation.
I'm not knowledgeable about the Turbo Tax program.
···
________________
Jean $�ott
http://queenofcomps.com/
New blog taking the place of
Frugal Fridays. Go to
http://lasvegasadvisor.com/
and click on "Frugal Vegas."
That is what I do, with a note of explanation.
Don the Dentist
···
--- In vpFREE@yahoogroups.com, "Jean Scott" <queenofcomps@...> wrote:
Many many people DO add their gambling 1099s to their W-2G's
this before I file.>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
My accountant does the same thing (i.e. lumps casino issued 1099s in
with other gambling income). I believe any logical person would agree
that casino issued 1099s for drawings, tournament winnings, and such
are a direct extension of gambling activity - therefore
clearly "gambling income" - and therefore you should be able to deduct
losses against these 1099s.
That's not to say that you won't run into an IRS agent who disagrees
with this interpretation.
EE
···
--- In vpFREE@yahoogroups.com, "VpKing77" <vpking77@...> wrote:
Using Turbo Tax when you enter 1099's it enters them into gross
gambling income. I'm a little puzzled because the IRS is disallowing
writing your losses again 1099 wins. I can't believe Turbo Tax would
make this error. I have used Turbo Tax for many years and it is a
flawless program. I am inclined to contact them and ask them about
eecounter wrote:
> Using Turbo Tax when you enter 1099's it enters them into gross
> gambling income. I'm a little puzzled because the IRS is
> disallowing writing your losses again 1099 wins. I can't believe
> Turbo Tax would make this error. I have used Turbo Tax for many
> years and it is a flawless program. I am inclined to contact them
> and ask them about this before I file.
Characterizing 1099-reported income received from casinos as gambling
related income is a sustainable filing position when play is a
prerequisite to participation in the related event.
It's advisable to attach a brief statement identifying the 1099's
which are being reported in this manner. An inability to
electronically match 1099's on file with reported "Other Income" may
flag your return for further review (and possibly a proposed
assessment if it's deemed that you have omitted the income from your
return).
Similarly, identifying W-2G income which has been restated on a
"session" basis can avert similar inconvenience.
- Harry
I remember several years ago looking at one of those JK Lasser tax
books at the store. It had a sidebar detailing this very thing. A
guy had claimed the big prize in a casino drawing (and the 1099 he got
with it) were gambling activity and he could deduct gambling losses
against it. The IRS tried to disallow the deduction, but the tax
court eventually said that since the entries were tied to gambling
activity, the prize was gambling income.
I may be fuzzy on the details and I don't have a cite. Anyone with
this sort of problem should do some research or ask their
accountant/tax preparer.
···
On Feb 11, 2008 6:30 AM, eecounter <eecounter@hotmail.com> wrote:
I believe any logical person would agree
that casino issued 1099s for drawings, tournament winnings, and such
are a direct extension of gambling activity - therefore
clearly "gambling income" - and therefore you should be able to deduct
losses against these 1099s.