I have some winnings from sportsbooks, casinos and NJ lotto that will be reported as ~$1800 for federal purposes. (I will not be receiving a 1099 or W-2G for these winnings - i.e., all self-reporting.) All of these are NJ-sourced income, which is my state of residency.
I have gotten to $1800 by adding my winning lotto tickets to my winning sportsbook bets to my winning casino sessions (using the "sessions" method). I will be taking a standard deduction. Accordingly, I will NOT be subtracting losing lotto tickets, losing sportsbook bets or losing casinos sessions from my federally reported winnings (since not permitted for federal purposes) nor will I be taking a deduction any for losing lotto tickets, losing sports bets or losing casino sessions (since I am taking the standard deduction).
However, NJ calculates taxable gambling income differently. (https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml). NJ let's you "net" all lotto and gambling winnings/losses and has an exclusion for NJ lotto winnings up to $10K. I calculate my NJ taxable gambling winnings as ~$1200.
Given that I have $1800 in federal gambling winnings but only $1200 in state gambling winnings, and the way to get there is more complicated than simply wins minus losses, how can I input this on TurboTax?
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Follow these steps to enter the gambling winnings in the federal section:
The state nets the amount correctly and no further entries are needed.
Follow these steps to enter the gambling winnings in the federal section:
The state nets the amount correctly and no further entries are needed.
Clever! Thanks.
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