If you report the gambling winnings in the Less Common Income section of the program you are specifically asked if you received a Form W-2G, answer You did not receive a W-2G. The following screen askes if you received gambling winnings not on a W-2G. answer YES and enter the amount of winnings you received. The next screen askes the amount of losses you had from gambling but not to exceed the amount of winnings, enter the amount. Click on DONE.
Gambling losses can only be deducted up to the amount of the gambling winnings.
Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. The amount from Part I of Schedule 1 Line 10 flows to Form 1040 Line 8.
Gambling Losses are reported on Form 1040 Schedule A as a Other Itemized Deductions. Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.
To enter, edit or delete Gambling Winnings and Losses -
Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Prizes, Awards, and Gambling Winnings, click the start or update button
