My husband won 14,000.00 at casino..Can he claim all the losing lotto tickets … to wash out taxes?
Q) My husband won 14,000.00 at casino in Delaware we live in Md. Can he claim all the losing lotto tickets he has lost this year to wash out taxes owed for this 14,000.00 winning. Also what is the tax percentage to Maryland and Federal for tax withholding on this amount.
A) According o TurboTax.com
“Gambling losses are indeed tax deductible, but only to the extent of your winnings. … However, the deduction for your losses is only available if you are eligible to itemize your deductions. If you claim the standard deduction, then you can’t reduce your tax by your gambling losses.”
Because the IRS processes the first return it receives, if another person claims your dependent first, the IRS will reject your return. The IRS won’t tell you who claimed your dependent. But if you don’t suspect anyone who could have claimed the dependent, your dependent may be a victim of tax identity theft. You’ll need to take some steps to protect your right to claim the dependent and your refund if you don’t think that the other person was eligible to claim your dependent. First, double check that you meet all of the requirements to claim the dependent.
The IRS may delay your refund while the IRS looks into the issue, but you should still receive your refund. File a paper return. Note that when you file a paper return, it can take six to eight weeks for the IRS to process. This includes things like birth certificates and proof of identity, but also documents that show that your dependent lived with you at the same address for more than half of the year. This doesn’t mean that you can’t correct the situation. Don’t panic. The most important thing to remember is to prove with proper documentation that you are entitled to claim the dependent. Document your case as the IRS rules for claiming a dependent can get complicated.