The article is correct - https://turbotax.intuit.com/tax-tips/jobs-and-career/how-to-pay-taxes-on-gambling-winnings-and-losse...
Total Winnings are reported as income on a tax return regardless of the amount of losses incurred in gambling. Losses are reported on Schedule A as an itemized Miscellaneous deduction. Losses reported cannot be more than winnings.
Further down the article it is noted how to report the losses -
You can deduct your losses…to an extent
You can’t deduct the cost of your wager from your winnings when determining how much you won, but you can deduct your gambling losses subject to certain rules.
- You must itemize your deductions to claim your gambling losses as a tax deduction.
- This means you can’t take the standard deduction for your filing status, which often amounts to more than a taxpayer’s itemized deductions.
You’re allowed to deduct losses only up to the amount of the gambling income you claimed. So if you won $2000 but lost $5,000, your itemized deduction is limited to $2,000. You can’t use the remaining $3,000 to reduce your other taxable income. You have to claim $2,000 in income on your Form 1040 and then separately claim $2,000 as an itemized deduction.
