This may help someone.
Types of S/PDIF(digital) outputs seen in Laptops
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1. Digital Coaxial along with Stereo analog in the same headphone jack (Most common type )
How to connect it to AVR?
I. Get a 3.5mm Mono to RCA adapter. Then connect a coaxial cable from it to your AVR's coaxial input.
II. Get a 3.5mm Mono to RCA digital coaxial cable. (hard to find). Then connect it from your laptop's headphone jack to your AVR's coaxial input.
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2. Digital Optical along with Stereo analog in the same headphone jack (Notice the red light coming out from the LED inside the headphone jack)
How to connect it to AVR?
I. Get a mini toslink to toslink adapter. Then connect a optical cable from it to your AVR's optical input.
II. Get a mini toslink to toslink optical cable. Then connect it from your laptop's headphone jack to your AVR's optical input.
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3. Dedicated Digital Coaxial output
How to connect it to AVR?
I. Use a digital coaxial cable from laptop to AVR's coaxial input.
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4. Dedicated Digital Optical output (Most rare)
How to connect it to AVR?
I. Use a digital optical/toslink cable from laptop to AVR's optical input.
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5. HDMI output (which supports audio output, not passthrough)
How to connect it to AVR?
I. Use a HDMI cable from laptop to AVR's HDMI input.
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And lastly the most common scenario.
6. No S/PDIF output
How to connect it to AVR?
I. Get a 3.5mm Stereo to RCA adapter. Then connect a Stereo RCA cable from it to your AVR's Sreteo Analog input.
II. Use a 3.5mm Stereo to RCA cable. Then connect it from your laptop's headphone jack to your AVR's stereo analog input.