I will be itemizing this year. One of my sporting hobbies offers "options" to potentially win money. To partake in these options, there is a cost. The payout depends on other players and scores that also play the same options.
So, in a sense, it's gambling. I have to pay money to have the opportunity to win, but it's not a guarantee that I will win any money, it's all dependent on my score, versus others, and the money is equally divided out to those who's score is placed. It's called a lewis option.
For example: Let's say I received a 1099-MISC for $750 for the calendar year for winnings. Let's also say that I spent $500 in entries to be able to win that $750. At the end of the day, I'm up +$250, NOT $750. Or, let's say I spent $1,000 in entries to win $750. Obviously, IF it was a W2-G, I could deduct $750 to wash it out.
The facility that holds these events, after winning a total of $600 or more in a calendar year, will send out a 1099-MISC with the total amount of all the events in box 3.
Since I will be itemizing, where can I enter my total "wagers" to offset the winnings total? I understand that when you get a W2-G and also itemize, that you can deduct your wagers up to the winnings amount, however since I receive a 1099-MISC, I cannot find where to enter my wagers in the same fashion.
I read another thread that mentions just to enter the 1099-MISC box 3 amount as a W2-G and then deduct the wagers, but that doesn't seem quite right; if i receive a 1099-MISC, I would imagine you must enter it as a 1099-MISC and no where else.
