To enter your gambling losses:
- Go to Tax Tools > Tools > Topic Search
- Type gambling loss in the search box and click Go.
- When it asks did you win money or prizes, click Yes.
- If you have a w-2G, click enter W-2G. If not, click skip W-2G.
- Any other gambling winning? Answer Yes or No.
- The next screen will ask for your gambling losses. (amount cannot be more than the amount of the winnings)
If you itemize instead of taking the standard deduction, you can deduct gambling losses up to the amount of your winnings.
Gambling losses can only be deducted up to the amount of the gambling winnings. Gambling winnings are reported on Form 1040 Line 21 as Miscellaneous Income. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.
To enter, edit or delete Gambling Winnings and Losses -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Less Common Income
- On Gambling Winnings, click the start or update button
Or enter gambling winnings on w-2g in the Search box in the upper right of the program screen. Click on Jump to gambling winnings on w-2g