Please help. I recently won a $26,000 jackpot.

Hello forumers,
I recently won roughly $26,500 after hitting
a Royal Match at a Blackjack table. They automatically
withheld state tax, but I didn't have them withhold a federal
tax in hopes of using losses to help cover the federal tax.

My question is this, if I owe $7,300 in federal ya on my winnings, could
I essentially gamble that $7,300 at the casino and use it's losses to
cover the tax I owe? Does it cover $1 for $1? So would it be better to
buy $7300 in lottery tickets instead of just giving the $7300 to Uncle Sam?

Please help this is very confusing to me.

Currently I have won around $28,000 altogether and loss around $3000 on
My players card.

Thanks,
Kyle

Quote: Kvhawkins88

Hello forumers,
I recently won roughly $26,500 after hitting
a Royal Match at a Blackjack table. They automatically
withheld state tax, but I didn't have them withhold a federal
tax in hopes of using losses to help cover the federal tax.

My question is this, if I owe $7,300 in federal ya on my winnings, could
I essentially gamble that $7,300 at the casino and use it's losses to
cover the tax I owe? Does it cover $1 for $1? So would it be better to
buy $7300 in lottery tickets instead of just giving the $7300 to Uncle Sam?

Please help this is very confusing to me.

Currently I have won around $28,000 altogether and loss around $3000 on
My players card.

Thanks,
Kyle

You owe taxes on whatever you won after subtracting losses. Right now it looks like you owe on 25k, if you lose 4k more, you will just end up owing taxes on 21k.

Don't forget you need to keep a personal gambling log of wins and losses. A Win loss statement is not always acceptable.

Some here probably know since this is a math and gambling forum. But if it were me, I'd contact my CPA. If you don't have one, perhaps it is time to get one.
Just my .02

Quote: texasplumr

Some here probably know since this is a math and gambling forum. But if it were me, I'd contact my CPA. If you don't have one, perhaps it is time to get one.
Just my .02

Preferably someone that has some experience in gambling taxes. I know someone with VERY reasonable rates, no fancy office etc etc (usually a flat fee) who handles a fair amount of APs. No complaints I have heard of in over 15 years. PM me if interested in her contact information.