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New Member
posted Mar 3, 2023 1:44:48 PM

Can I report net gambling wins/losses as required for the New Jersey nonresident form (NJ-1040NR, line 21)? Net is zero, losses exceed W-2Gs, but no prompt or box.

W-2Gs and other wins and all losses(including NJ and other states)  were reported in federal return, but did not carry over to state return.  There is seemingly no method to report properly for New Jersey amounts.  

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5 Replies
Expert Alumni
Mar 3, 2023 3:00:56 PM

If you itemized on your federal tax return, then no adjustment is needed.

If you took the standard deduction on your federal return, then enter your winnings/losses adjustment in the "Other Income Section" of the Adjustment Category of New Jersey Non-Resident return.'

 

Per the New Jersey State Website you may use your gambling losses to offset gambling winnings from the same year as long as they do not exceed your total winnings. If your losses were greater than your winnings, you cannot report the negative figure on your New Jersey tax return. You must claim zero income for net gambling winnings.

 

For more information, see TB-20(R) , Gambling Winnings or Losses.

  

Click here for information on "Gambling Income and Losses."

 

Click here for information regarding reporting your gambling losses from NJ Revenue.

 

Click here for information regarding reporting gambling losses.

 

[Edited 03/04/2311:19 am PST] @drohr01 

Level 1
Mar 5, 2024 1:39:11 PM

I entered the losses against my winnings on the federal schedule A, but where do i do that for the NJ Turbo Tax program? The W2G still shows up in it?

Expert Alumni
Mar 5, 2024 2:53:01 PM

The information you entered on your federal return should flow over to your NJ return.  

 

New Jersey uses the Gambling Income Statement which flows to line 24 of your NJ-1040.  The total gambling winnings are reported net of your gambling losses on your NJ-1040.  You do not have to itemize to claim the losses in NJ.  

 

So if you look at the forms in your return, as long as you entered your W2G and then entered your losses from the W2G in the federal section, you will see your net winnings on line 24 of your NJ 1040

 

Level 1
Mar 7, 2024 2:52:11 PM

To deduct gambling losses on the federal schedule A, all sources point to using “other deductions”. There’s no place there, that I can see, to note the deduction as gambling losses. The deduction doesn’t get “lined up” with the winnings, so there’s no place to carryover the losses to NJ, that I can see. Also, NJ treats Seems to be a disconnect.

Expert Alumni
Mar 7, 2024 3:12:15 PM

You can't deduct gambling losses unless you itemize on your federal return.   The NJ return will include your losses whether you itemize or not, as long as they are entered in the federal section.   After you enter your gambling winnings in the federal section, the next question is about your losses.    Go back to the federal gambling winnings and look for the following screen to enter your losses.   It is right after wins and w-2gs.   @zmhdes