Get your taxes done using TurboTax

If you have all of your gambling winnings reported in the gambling section, you have 2 choices with the 1099-K - either enter it in TurboTax with an offsetting entry or do not report it at all.    The result is the same.

• If you don't enter it on your tax return, you would need to keep clear records of your gambling transactions (you should do that anyway) in the event you receive an inquiry.   Make sure you can show where all of your actual gambling winnings were reported on this tax return.   As long as you are reporting ALL of your income on your tax return, and you have records to show that, you should not have an issue with the IRS.

• The other option is to report the 1099-K as Other Income and then enter another offsetting entry in the Other Reportable Income section (with the same amount, but with a negative sign in front of the amount) with a description of 'all gambling winnings reported on Line 8b of Schedule 1'.    This will negate the income from the 1099-K, so it is not taxable on your return.

In either case, make sure to keep detailed records of your gambling winnings and losses so you can show that you have included all of your income on your tax return.   See the images below to see where to enter the offsetting negative entry.  @Rookie-2727