Your gambling winnings will be added to your other income
for the year and you will be taxed on all of it. Whether or not you get a refund or not depends
on how much tax you owe on all of your income.
The place you won the lottery from should be sending you a
form W2-G. The money that they withheld should be
federal and state withholding just like is taken out of a normal W2.
You can use gambling
losses to offset your winnings, but only if you itemize deductions, meaning you
have to have enough deductions to be higher than your standard deduction. Also, you can only use losses up to the amount
you won.
In the TurboTax program
follow these steps in the income section:
Other common income
Gambling Winnings
Then you will choose start
and enter the W2-G information.
