Yes, you need to report gambling winnings from form 1099-K. You may only deduct gambling losses, to the extent of gambling winnings. The gambling losses will be on Schedule A, if you itemize your deductions, as opposed to taking the standard deduction.
To report your gambling winnings on your tax return, complete the following steps in TurboTax:
- Open your return.
- Search for Other Income with the magnifying glass tool on the top of the page.
- Select the Jump to Other Income link in the search results.
- Select No to the question Did you get a 1099-MISC?
- Scroll down to Gambling Winnings under Less Common Income.
- Click Start next to Gambling Winnings.
- Choose Yes to the question Did you win money or prizes from gambling or lotteries during 2020?
- Choose I did not receive a W-2G.
- Follow the on-screen instructions to enter your data.
- After you enter your gambling or lottery winnings that weren't reported on W-2G, you can enter your Gambling Losses on the next screen.
Source: LenaH
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