<p>So my mom gambled this year, but she lost it all. Do I have to include this into the annual income box in college applications?</p>
<p>If she lost it, it isn’t income.</p>
<p>If you are asking can she reduce her non gambling income by her gambling losses, the answer is no. </p>
<p>If she had gambling income, that must be reported to the IRS and will be included as income on her tax returns. From a tax standpoint documented gambling losses (i.e.must have receipts/records) can be used as an itemized deduction but only up to the amount of any gambling income (not any other type of income) on the tax return.</p>
<p>So what if it is reported in the tax return as gambling winnings.
But in the deductions, there are also all the reports of the gambling losings?
Do I still have to include her winnings (even if she lost it all back) in my college application under income?
Or do I just subtract her winnings from the annual gross income, because she lost it all?</p>
<p>You have to report exactly what is shown on the tax return as filed. You can’t make adjustments to it.</p>
<p>So it’s still under the income even if it’s listed under “deductions”?
I’m just worried about how this will play out in fee waivers. :(</p>
<p>You can’t even file the FAFSA until 1/1/13 and it has to use the 2012 tax return which can’t be created yet. </p>
<p>Swimcatsmom’s answer above is 100% correct.</p>
<p>The AGI is what you report, along with income from work (which will not include gambling winnings - just line 7 & any business income reported on line 12), and taxes paid.</p>
<p>This is not correct, AGI will include gambling winnings. They will then reduce taxable income as part of itemized deductions.</p>
<p>It will not be listed as part of EARNED income, though. That might make a difference in getting the fee waivers, I don’t know.</p>