I also volunteer with AARP Tax-Aide. With the large standard deduction, we see very few clients itemizing their deductions. So, most of the time, the client pays tax on their large gambling winnings and can't deduct their losses. To add insult to injury, often the gambling winnings cause more of their social security income to be taxable, so they pay additional taxes on that income as well.
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I also volunteer with AARP Tax-Aide. With the large standard deduction, we see very few clients itemizing their deductions. So, most of the time, the client pays tax on their large gambling winnings and can't deduct their losses. To add insult to injury, often the gambling winnings cause more of their social security income to be taxable, so they pay additional taxes on that income as well.
Post: Taxing Situations
Link to comment from April 26, 2025