What's interesting in my case is that I had to gamble on slot machines in order to earn entries into a drawing where I eventually won a "prize". Usually when you gamble on slots in my area anything over $1199.00 gets you a W2-G form for tax purposes. When you win prize like I did....a 2021 Jeep where I decided to take the cash prize instead of $35,000 I was issued a 1099-MISC. I was unable to use my slot machine losses to offset the 1099-MISC. prize...the IRS rejected my return. But since I had to gamble on slots to earn entries into the prize drawing...perhaps it should be handled in a different manner.
So essentially my prize was just added to my income and I was not able to use my slot losses to offset the prize dollars. Good thing I am retired so my tax liability was still low, after all, taxes are "on sale" right now, they are low....but I don't want to pay any more than I actually owe!
Thanks for the help on this topic.
