Get your taxes done using TurboTax

Please understand that there are two issues with your situation:

1. You want to enter Gambling Winnings which were not reported with Form W-2G. (so that you can also report losses up to the amount won)

2. You have a 1099-K that reports "Other Income" but you want to report that amount as Gambling Winnings instead.

 1. You can enter the amount of gambling that were not reported on Form W-2G by going to 

Wages & Income

Less Common Income

Prizes, Awards, and Gambling Winnings    START or UPDATE

"Did you receive a W-2G"   "No"

"Let's check for winning not reported on a W-2G"    "yes"  enter the amount of the 1099-K that were Gambling Winnings

CONTINUE

Enter your Gambling Losses     DONE

Gambling winnings are on Schedule 1 line 8b

Gambling loss in on Schedule A line 16

2. NOW LETS WORRY ABOUT THE FORM 1099-K

 The IRS will look for the Form 1099-K so you need to report it. 

You already reported the SAME AMOUNT as gambling, so you will 

a) Enter Form 1099-K so the IRS can match it

b) Back out the income so you are not double-taxed

To do that-

Enter the 1099-MISC Under

Wages & Income

Other Common Income

Income from Form 1099-K   START

Select "Other" for "Which type of income is your 1099-K for?" and enter the 1099-K as it was reported, 

THIS GETS THE FORM 1099-K ON YOUR RETURN, now back out the double income-

Wages & Income

LESS COMMON INCOME

Miscellaneous Income, 1099-A, 1099-C    START 

Scroll all the way down to the LAST option- Other reportable income   START 

Type "Gambling winnings reported on 1099-K" or some other description the IRS will understand

enter the amount AS A NEGATIVE AMOUNT (put a minus sign (-)  in front of the number

Done

The 1099-K as well as the negating entry will both be on Schedule 1 line 12

You entered the gambling winning where you could also report your loss

You entered the 1099-K so the IRS can find it

You entered a reversing entry to zero-out the 1099-K