- 2 - Respondent determined a deficiency of $2,525 in petitioners’ Federal income tax for 2002. The sole issue for decision is whether gambling winnings of Janice G. Spencer (petitioner), who is not a professional gambler, are required to be reported as gross income, or whether the winnings may be offset by the losses that were incurred in connection with the gambling activity. Some of the facts were stipulated. Those facts, with the exhibits annexed thereto, are so found and made part hereof. Petitioners, husband and wife, were legal residents of Independence, Missouri, at the time they filed their petition. Petitioners filed a joint Federal income tax return for 2002. On their Form 1040, U.S. Individual Income Tax Return, they reported wage and salary income of $30,314, of which $24,717.64 was earned by petitioner Janice G. Spencer, and $5,595.86 was earned by her spouse, Fred E. Egerton (Mr. Egerton). Petitioners also reported Social Security income of $7,728, of which the reported taxable portion was $1,089. Petitioners claimed a $395 tax credit pursuant to Form 8880, Credit for Qualified Retirement Savings Contributions.2 Petitioners did not claim any itemized deductions and instead claimed the standard deduction under section 63. 2The Social Security income and the retirement savings contributions credit are believed to be attributable to petitioner Fred E. Egerton.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011