Comments on: Tax Tip {Part 2}

By: personal loans for bad credit

personal loans for bad credit — Fri, 12 Feb 2010 04:10:45 +0000

I am completely impressed with the article I have just read. I wish the writer of http://www.shawnann.org can continue to provide so much useful information and unforgettable experience to http://www.shawnann.org readers. There is not much to say except the following universal truth: The highest compliment someone can give is to say you made them think. I will be back.

By: Shawn Ann

Shawn Ann — Mon, 25 Jan 2010 14:17:54 +0000

I agree, people really should take the time to find out where the numbers come from and ensure they understand their returns.

By: Betty

Betty — Mon, 25 Jan 2010 00:31:20 +0000

This is a wonderful idea Shawn Ann. You’ve posted so much info today.
Amazing how many people year after year simply make no effort to understand what goes where on the tax form. They blindly trust whatever their mother/friend/paid preparer decides to put on the form.

By: Shawn Ann

Shawn Ann — Sun, 24 Jan 2010 20:27:11 +0000

Betty, Thank you! I forgot that when I was doing this I was just doing a standard 1040, without all the bells and whistles. I’ve removed the losses part, so I don’t get people lost and will discuss that in another area of deductions.

By: Betty

Betty — Sun, 24 Jan 2010 19:01:15 +0000

One thing that is a common mistake – IRS wants gross gambling winnings on line 21 not NET. Losses are absolutely deductible but they go on Sched A line 27 … “W2G gambling losses”. If your tax situation does not provide enough deductions to make itemizing showing your gambling losses worthwhile, then losses do not get shown. This is from 1040 instruction booklet which says gambling winnings go on line 21 – “for details on gambling losses, see the instructions for Schedule A, line 28″
My state does want a NET directly on the gambling income line which adds to the confusion.
Line 21 is also the line where we add in any prize winnings – assuming we were lucky enough to win anything.