Calculation on How Much You Owe

1. Federal Taxes

Income Details:

Job Income: $27,890
Gambling Winnings: $10,000
Total Income: $37,890

Taxable Income:

Standard Deduction (Single for 2024): $14,600 $37,890 – $14,600 = $23,290 (taxable income)

Gambling Losses:

Gambling losses can only offset gambling winnings if you itemize deductions. Since you’re likely taking the standard deduction, you cannot deduct gambling losses on the federal level.

Tax Bracket (2024):

10% Bracket: $0–$11,000 → $1,100 tax
12% Bracket: $11,001–$23,290 → $1,471 tax $1,100 + $1,471 = $2,571 federal tax

Premium Tax Credit Adjustment:

The Premium Tax Credit (PTC) is based on your Modified Adjusted Gross Income (MAGI), which includes gambling winnings.
Since your income is now $37,890, your PTC will be reduced. The exact amount depends on your household size and location, but if the credit was based on $28,000 income, you’ll owe back a portion of the credit. The IRS form 8962 will calculate this.

2. Taxes Already Paid

You’ve already had $3,491 withheld from your paycheck for federal taxes. Subtracting your estimated tax liability: $3,491 – $2,571 = $920 refund (so far).

However, the PTC repayment will likely reduce or eliminate this refund, and you may owe if the repayment is substantial.

3. Connecticut State Taxes

Taxable Income:

Connecticut allows gambling losses to offset winnings. If your losses equal $10,000, your gambling income will be reduced to $0 on the state level. $27,890 (job income only) – $15,000 (CT standard deduction) = $12,890 taxable income.

State Tax Bracket:

Connecticut’s tax rate is 3% on the first $10,000 and 5% on income above that. $10,000 × 3% = $300 $2,890 × 5% = $144.50 Total CT Tax: $444.50

Summary:

Federal Taxes Owed: Likely $2,571, plus some portion of the PTC repayment.
State Taxes Owed: $444.50
Total: Approximately $3,015.50, but the actual amount depends on how much of the PTC you must repay.

What You Should Do:

Gather Premium Tax Credit Information: Use IRS Form 8962 to determine how much of the credit must be repaid.
Check Gambling Loss Records: Ensure you have records of losses to deduct on the state level.
Consider a Tax Preparer: Given the complexity of the PTC and gambling income, a professional can ensure accuracy and minimize your liability.