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Taxes owed even after zero out
Posted: Tue Sep 08, 2009 8:40 pm
by billslim
Why is it that you still owe taxes even when you have a net loss for the year? For example: If you have 20k in 1099's for a given year and yet you show your loss (irs only allows deductions up to your win) of 20k. You still owe tax! How can this be? Put it in any of the major tax programs (turbo tax etc..) and you always owe.... Anyone have ideas?
Re: Taxes owed even after zero out
Posted: Tue Sep 08, 2009 10:46 pm
by damule
Why is it that you still owe taxes even when you have a net loss for the year? For example: If you have 20k in 1099's for a given year and yet you show your loss (irs only allows deductions up to your win) of 20k. You still owe tax! How can this be? Put it in any of the major tax programs (turbo tax etc..) and you always owe.... Anyone have ideas?
I claim all my 1099-G's every year and deduct the exact amount as gambling loses and my taxable income is not increased by a cent. What you do need to be careful of is if your 1099-G's put you into a different tax bracket than you'd be in before them. This could alter your return somewhat.