Gambling losses are entered immediately after the program asks for gambling winnings. Per IRS, you cannot deduct losses without reporting winnings... so you must enter winnings first. You can only deduct gambling
losses up to the
amount of your gambling winnings. If
you won thousands, the same amount can be deducted as your losses. If you
happen to have a bad year and have no winnings - you cannot report any losses
without the winnings. Per IRS, you need to first owe tax on winnings before a
loss deduction is available.
- Federal taxes
- Wages and Income
- Scroll down to Less
Common Income
- Select
Gambling Winnings - please follow the prompts. You will be asked if
you received form W-2G as that's how winnings are usually
reported. But - if you have not received the
form- select Skip; the
program will ask about winnings not reported on Form W-2G, then you will be able to enter your losses.
