W-2G

[Sandy]

My client received a W-2G and I don't know of any way to offset their winnings. They do not itemize. Can anyone help?

[Chrisbry]

As far as I know, the only way to claim the gambling losses is on Schedule A.

[Janitor Bob]

My client received a W-2G and I don't know of any way to offset their winnings. They do not itemize. Can anyone help?

The only way to offset W-2G income is to deduct gambling losses on Sch A (if they exist and are substantiated)....even then, that may not help with Ohio return...taxable on the Ohio return as well.

[jainen]

>>They do not itemize. Can anyone help?<<

They don't need help, since they are already deducting MORE than their actual costs. Fill out Schedule A and print it separately. Stamp it "draft" and include it with client copy so they will understand that you did deduct everything. It might even generate itemized deductions on the state return.

[Pacun]

"It might even generate itemized deductions on the state return."

For my local states, if you do not itemize on federal, you cannot itemize on the state. Are some states different on this regard?

[Sandy]

The only way to offset W-2G income is to deduct gambling losses on Sch A (if they exist and are substantiated)....even then, that may not help with Ohio return...taxable on the Ohio return as well.

Thank you! That is what I thought but they tried to tell me that HR said that thy could offset it without itemizing.

[GeneInAlabama]

>>They do not itemize. Can anyone help?<<

They don't need help, since they are already deducting MORE than their actual costs. Fill out Schedule A and print it separately. Stamp it "draft" and include it with client copy so they will understand that you did deduct everything. It might even generate itemized deductions on the state return.

Alabama state returns are totally separate from the federal return. Many people have to file a federal return but not an Alabama state return, Many have to file an Alabama state return but not a federal return. And if you itemize on one, you do not have to itemize on the other. The standared deduction on the Alabama return is so low that almost everyone itemizes.

Gene

[Karen Lee]

Sandy:

Have to do Schedule A for gambling losses and the limit on the losses is to the extent of their winnings. When someone comes into my office and says HRB says they can do it, I ususally stop the conversation and tell them the would have to go to HRB to take the deduction. Also ask them to come back after HRB prepares and let me look at it. So far no one has done that.

Pretty much do that when anyone says "someone said I can..." I tell them to have "someone else" prepare the return. Maybe I should change my attitude with HRB right down the block.

Karen

[Terry O]

Since we live near a number of gambling institutions, I do see a fair share of W-2G's.

I have explained to my clients the rules about the losses, and I SWEAR - -they go to the Off Track Betting places & sweep the floor!!!

The clients who do this on a regular basis also know to use their comp cards - -and believe it or not, the statements they receive show the money they put into the slots.

Now - - -that being said - - -the ones who win at a table - - - -I NEVER hear about that!!!

[Sandy]

Sandy:

Have to do Schedule A for gambling losses and the limit on the losses is to the extent of their winnings. When someone comes into my office and says HRB says they can do it, I ususally stop the conversation and tell them the would have to go to HRB to take the deduction. Also ask them to come back after HRB prepares and let me look at it. So far no one has done that.

Pretty much do that when anyone says "someone said I can..." I tell them to have "someone else" prepare the return. Maybe I should change my attitude with HRB right down the block.

Karen

Very good advice. Do you know anything about clients that sell Avon???