Your refund mostly likely decreased because you are taking the standard deduction on your tax return. Once you entered your gambling winnings, you had an increase in taxable income. However, since gambling losses are only deducted if you itemize on Schedule A, your input of losses will not change your tax calculation if you take the standard deduction.
TurboTax automatically selects the deduction (standard or itemized) that gives you the best outcome on your federal taxes. If the total of your itemized deductions are not greater than the standard deduction, it is better to take the standard deduction. Itemized deductions include items such as: mortgage interest, donations, state taxes, real estate taxes and medical expenses.
For more information on deductions, please see How does the Standard Deduction differ from itemizing deductions?
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