Your winnings should be reported to you on a W2-G instead of a 1099. To enter your gambling winnings and claim the losses that go with the winnings, you can select the following:
- Income
- Less common Income
- Prizes, Awards, and Gambling Winnings
- Say No, you did not receive a W2-G, hit next
- Enter your winnings
- On the next screen enter your losses.
Since you have the 1099-Misc You will need to make an additional entry to remove the income but still have the 1099-Misc included on your return.
To remove the income so it is not double reported, you will go to
- Income
- Miscellaneous Income
- Other Income not already reported on Form w-2 or Form 1099
- Select yes to Other Wages Received
- Hit continue 3 times without entering anything
- Say Yes to did you earn any other wages
- Select Other then Continue
- Enter gambling income reported on 1099-Misc instead of w2 g
- then enter the amount of the 1099-Misc as a negative number.
In order to claim gambling losses, you must itemize your return. So even if you left it ride in your account and then lost it all betting it again, you would need to include the winnings as income and then itemize your return to claim any of the losses.
Other Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.
Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.
The 2023 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $27,700
- Married Filing Separate (MFS) $13,850
- Head of Household (HOH) $20,800
- Single $13,850
Blind and MFJ or MFS add $1,500
Single or HOH if blind add $1,850
Did you receive a W2-G?
To enter your w2-G select the following:
- Federal
- Income
- Prizes, Awards, and Gambling Winnings under Less Common Income
(edited 2/17/24 @ 12:50PM PST) @bschnebly
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