Notice code 133

Notice code 133 (Default) — We didn’t allow the amount claimed as gambling losses on page 1 of your tax return. You can’t reduce…

What this IRS notice code means, and what to check before you reply.

What to do next

Start with these steps before you reply.

133

Read the notice carefully and note any deadline. Gather returns, notices, and payment records. Book a free strategy session before responding if the amount is large, unclear, or collection language appears.

What the IRS language says

We didn’t allow the amount claimed as gambling losses on page 1 of your tax return. You can’t reduce gam¬bling winnings by gambling losses and report the difference. You must report the full amount of winnings as income on page 1 of your tax return and claim losses up to the amount of winnings as an itemized deduction on line 28 of Schedule A, Itemized Deductions. If you filed a Schedule A, we changed it to include the losses. If you didn’t file a Schedule A and your gambling losses were: - less than the standard deduction; we did not allow them as a deduction from your income - greater than the standard deduction, we allowed them as your total itemized deductions on Schedule A because it lowered your taxable income. Note: If you have other itemized deductions in addition to these gambling losses, you may file Form 1040X, Amended US Individual Income Tax Return, and include them on Schedule A, Itemized Deductions, to reduce your tax.