You will enter all of your gambling winnings into TurboTax. Your winnings and losses need to be separated and reported individually. You cannot offset your winnings from one day with your losses from another day in order to report your net winnings or losses.
Please see these links for additional information: Can You Claim Gambling Losses on Your Taxes? Gambling income and losses
You can only deduct your gambling losses if you itemize your deductions. You will only itemize your deductions if all of your itemized expenses exceed what you are getting for your Standard Deduction. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses.
Your gambling losses will flow to your state return. Your state may have different rules for gambling losses.
When you enter your gambling winnings, the TurboTax interview will also ask you questions regarding your gambling losses, after you input your gambling winnings. That is where you will input your gambling losses.
Keep in mind that gambling losses are only deductible to the extent of your winnings. You are required to report all the money you win as taxable income on your return.
The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings.
If you have a Form 1099-Misc, you will enter it as follows:
- Click on the "Search" icon
- Enter "1099-MISC" in the search box
- Select "Jump to form 1099-misc"
- It will take you to a screen that says, "Did you get a 1099-MISC?
- Select "Yes"
- Enter your Form 1099-MISC information
- Answer all follow-up screens
If you have to remove income that was "double reported" you will:
- Go to "Wages & Income"
- Scroll down to "Miscellaneous Income"
- Select "Start" or "Update" next to "Other Income not already reported on a Form W-2"
- On the screen "Other Wages Received"
- Select "Yes" to "Did you receive any other wages?"
- Skip the next three screens
- Select "Yes "to "Did you earn any other wages?"
- Select" Other" on the screen that says "Enter Source of Other Earned Income" then select "Continue"
- For description enter "gambling income reported on 1099-Misc instead of w2-g"
- Enter the amount of the 1099-Misc as a negative number.
Click here for additional information on gambling losses and what documentation is required.
Click here for Diary or Similar Record
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