Gambling losses are only deductible up to the amount of gambling winnings.
To report your gambling losses, you must itemize your income tax deductions on Schedule A. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses. The IRS doesn't permit you to subtract your losses from your winnings and report the difference on your tax return.
See this tax tips article for more information.
The entry field for gambling losses is actually in the Income section:
- Go to Federal Taxes tab ( Personal Tab in Self-Employed)
- Click Wages & Income
- Select I'll choose what I work on
- Then go to Less Common Income
- Click Gambling winnings
- Once you have entered your gambling winnings, click Done. After answering more questions, click Continue. Once you finish the questions for this area you will be provided an entry field to enter your gambling losses.
If you just added $1 to your taxable income, yet your tax went up by $12, it's probably because that $1 moved your taxable income into the next tax bracket and/or the next line of the tax tables. See here for the 2024 tax brackets and tax tables.
[Edited 02/03/25| 2:53pm PST] @blizz31393: (edited)
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