tax question [How to report 1099-MISC income vs. losses]

[3274Winston]

I rec'd w2 G for 2,000 casino winnings . I had enough losses to write off the win. I have already filed my taxes . Two days ago I got a 1099 Miscellanous for $1000 for a drawing from the same casino. I have enough verfiable losses to cover the total of 3000.00 winnings. Do I need to ammend the returns? Of is the loss statement sufficient should I ever get audited?

[HouseStark]

Are you saying that you did not include either of the $2000 or $1000 gambling winnings on your 2012 tax return? If so, you definitely should file an amended return. Take care of it now instead waiting to get the IRS notice several months down the road.

[3274Winston]

No I claimed the $2000 and have over 3000 in losses

[HouseStark]

If you already were claiming itemized deductions on Schedule A, instead of claiming the standard deduction, then this should not be an issue. The full amount of gambling winnings income could be cancelled out by the miscellaneous deduction for gambling losses. If you did not itemize your deductions, then you may only get a partial or even no benefit from the gambling losses deduction, depending on how far below the standard deduction amount amount you were before the gambling losses deduction was added.

Even with just the $1000 in additional gambling income to claim, you should still amend the return. Before you do so, make sure there are no other pieces of unreported income that will pop up.

[kaneohe]

HouseStark is correct. You don't get to report (or not report) NET gambling winnings. You must report the gross gambling winnings as income and then the losses (up to a max of the winnings) as an itemized deduction. As HS said, depending on your particular situation, you will either benefit fully from your allowable losses or not at all or somewhere in between.