[broiler]

The person did your tax return wrong. Gambling losses are not miscellaneous itemized deductions that are subject to the 2% limitation. Line 27 is the correct location for gambling losses. You can instruct him to look at the instuctions for Schedule A. Gambling losses are specifically listed as one of the items for line 27.

The reason that you are getting hit with AMT is that line 22 is not allowed for AMT purposes, but line 27 is allowed. It makes a big difference when you live in a high tax state, such as NY.

NY allows your gamling losses as a state itemized deduction. Your losses are large enough that you will not have a problem itemizing for NY.

I really hope that you weren't paying much to this guy to have your tax return prepared because his knowledge seems to be a little light on taxes in general.