Deductions & credits
You would only enter your gambling losses if you are itemizing your deductions. You would only itemize your deductions if all of your itemized expenses exceed what you are getting for your Standard Deduction.
When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses, after you input your gambling winnings from Form W-2G.
If it is advantageous for you to itemize your deductions, TurboTax will properly report your gambling losses. They will go on Schedule A on line 16, under "other". This information will flow through to your New York tax return.
To enter your Form W-2G in TurboTax you would enter it under "Less Common Income"
Then you would follow the screens and it will ask you about your gambling losses. This is where you will input them.
Keep in mind that gambling losses are only deductible to the extent of your winnings. You are required to report all the money you win as taxable income on your return.
The deduction is only available if you itemize your deductions. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses.
The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings.
Your winnings and losses typically need to be separated and reported individually. You cannot offset your winnings from one day with your losses from another day in order to report your net winnings or losses. The IRS does allow you to net your wins and losses on the same day for the same type of wagering if you meet certain requirements.
For New York income tax purposes, gambling loss deductions are limited to the amount of gambling income reported on your return. Other miscellaneous deductions are claimed on Form IT-196, lines 29 through 37.
Click here for additional information on gambling losses and what documentation is required.
Click here for additional information on itemized deductions.
Click here for additional New York information on itemized deductions.
