I know gambling losses against winnings are entered on the Federal return. On my federal I receive money back for taxes I already paid on the winnings. The loss is then carried over to the Colorado return.
But, Colorado is taxing me on my winnings without taking into account the losses. Which means I do not receive any of the taxes taken our of the winnings for the state taxes. In fact, I am taxed on the winnings and, therefore, I owe taxes on the winnings. Even though my losses equaled my winnings.
