Your first tax return

Retrieved January 1, A few common reasons you may not have received your refund: The Tax Institute Our experts share insights on the latest tax topics. Starting in , all Forms must be filed electronically on the website of the Department of Labor. A qualified scholarship is any amount you receive that is for either tuition and fees to attend an educational organization or fees, books supplies and equipment required for courses at the educational institution. The amount withheld is non-refundable to the taxpayer. The same time frame applies to deductions for a bad debt.

Related links

Is Gambling Income Taxable?

You hear the phrase capital gains a lot when people talk about selling a home, or selling stocks, or other investments - so what is it? When you sell a piece of property or stocks and bonds, and you make a profit from the sale, the profit income that you make is called a capital gain, and it is considered taxable income by the IRS. The IRS taxes income from capital gains differently than regular income. How the capital gains are calculated and how much it is taxed can be confusing and difficult to understand.

When you start a free tax return on efile. You can exclude this amount from your taxable income. You cannot exclude the income if you already excluded income from another home sale in the 2 years before the sale of this home.

If a capital gain is the money that you make on the sale of your home or investments, then the money you lose is called a capital loss, in other words, you made no profit from selling your asset. You can deduct capital losses on investment property only, not on property that was owned for personal use.

Losses on your investments are first used to offset capital gains of the same type. For example short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. If your net loss is greater than the maximum allowed amount, you can carry the excess amount over to future tax years. All capital gains and any capital losses are required to be reported on your tax return. Capital gains and losses are reported on Schedule D and the amounts are then reported on your Form Capital loss carryovers are reported using the Capital Gains Carryover Worksheet.

When you prepare your return on efile. By law, gambling winners must report all of their winnings on their federal income tax returns. Depending on the amount of your winnings, you may receive one or more Forms W-2G, which reports the amount of your winnings, as well as the amount of tax that was withheld, if any. You will need these forms to prepare your tax return. Remember that, even if you do not get a W-2G, you must report all gambling winnings.

If you win a non-cash prize, such as a car or a trip, you will be responsible for paying taxes on the fair market value of each prize. Depending upon the amount of your winnings and the type of gambling, the establishment or payer may be required to withhold income taxes. You may deduct gambling losses if you itemize your deductions. You can deduct your losses only up to the amount of your total gambling winnings. You must generally report your winnings and losses separately, rather than reporting a net amount.

The IRS requires you to keep detailed records of your gambling winnings and losses, and to keep any related documents, including receipts, tickets, payment slips, statements, Form W-2G, and Form You must be able to prove both your winnings and losses if you wish to deduct your losses.

The IRS suggests that you keep a gambling log or diary. If you efile your tax return, you do not have to send any W-2Gs or other documents to the IRS but you must keep them for your records in case of audit. The rules described on this page are for the majority of people with gambling income, those who are not professional gamblers. If gambling is your actual profession, then your gambling income is generally considered regular earned income and is taxed at your normal effective income tax rate.

As a self-employed individual, you will need to report your income and expenses on Schedule C. You can deduct gambling losses as job expenses using Schedule C, not Schedule A.

Nonresidents can usually report income that is "effectively connected" with a U. Gambling winnings, however, are considered to be "not effectively connected" and so must generally be reported on Form NR. Nonresident aliens generally cannot deduct gambling losses. However, there is a tax treaty between the United States and Canada that generally allows Canadian citizens to deduct their gambling losses, up to the amount of their gambling winnings.

If you have gambling winnings or losses, they must be reported on your tax return. When you prepare your return on efile. We will prepare all the forms needed to report this on your return so you don't have to worry about which form you need.

Information Menu