Carl had $2,000 gambling winnings and $8,400 gambling losses this year. Carl must include $2,000 in gross income and can deduct $8,400 as an itemized deduction.

Question

Quizplus · Accepted Answer

Carl must include the $2,000 in gross income, but he can only deduct gambling losses up to the amount of gambling winnings, which means he can deduct only $2,000, not $8,400, as an itemized deduction.

Carl Had $2,000 Gambling Winnings and $8,400 Gambling Losses This