You can still report the taxes withheld, even if you do not report the W-2Gs themselves. You can report them in the Federal > Deductions & Credits > Other Income Taxes Paid in 2021 > Withhlding not already entered on a W-2 or 1099.
I am not as well-versed on this topic as previous posters in this thread, but you would enter your sessions in TurboTax using the gambling winnings section in Federal > Wages & Income > Less Common Income > Gambling Winnings. You would enter that you didn't receive a W-2G and just enter the winning sessions on the next screen. For example:
- Session 1 you won 1,500 and lost 6,000
- Session 2 you got a W-2G for 50,000 and lost 45,000
- Session 3 you won 1,800 and lost 600
Using the regular method of reporting, you would report your W-2G and other winnings for a total of 53,300. You would then report losses of 51,600 which would be an itemized deduction.
If you opt for the sessions method, you would just report gambling winnings of 6,200 (5,000 for session 2 and 1,200 for session 3).
Form 8275 is not supported by TurboTax and neither is the sessions method of reporting. You would have to paper file to include Form 8275. This Form is basically used to tell the IRS, "Look, I know I'm doing something weird, even if you don't agree with it, at least take a look and don't add any penalties." If you do opt to paper file and include Form 8275, no TurboTax accuracy guarantees would be enforced.
I can't speak to what the IRS will do after that. It will certainly raise red flags if you received a W-2G and opt to report it this way and your entire gambling winnings do not add up to what is on the W-2G. What happens next is probably based on prior rulings, how much money is at stake, and if any regulations specifically addressing session gambling have been enacted. What I can say is that if you are opting to report this way, have a very good log of your gambling records and be able to defend what you have chosen to define as a gambling session.
@RowdyTuckah
