I live in Missouri, but have gambling winnings from Kansas. Please help!

[GambleQuestion]

As I understand, Kansas does not allow you to deduct losses from gambling. 

However I live in Missouri, where you are allowed to deduct losses. 

I have around $30,000 in winnings I must report. However I lost more than this amount in the last year.

I am uncertain of how to go about this on my taxes. Will I be able to deduct my losses since I live in Missouri but won the money in Kansas?

[MaryK4]

Yes, you will be able to claim the losses for Missouri, but you will have to pay state tax on all the winnings to Kansas.  

[GambleQuestion]

Thank you for the reply.

How does this impact federal taxes?

[LenaH]

You are required to pay tax on all of your gambling winnings on your federal return. However, when entering your gambling winnings, you will be prompted to enter your gambling losses. Gambling losses can be deducted up to the amount of gambling winnings. However, you can only claim your losses as a tax deduction if you itemize your deductions on Schedule A.

Here's where you enter your gambling winnings: 

1. Open or continue your return.
2. Locate the W-2G section:
   • TurboTax Online/Mobile: Go to W-2G.
   • TurboTax Desktop: Search for W2G (don't include any hyphens) and select the Jump to link.
3. Answer Yes on the Did you win money or other prizes in 2024? screen and follow the instructions to e...

@GambleQuestion 

[GambleQuestion]

Thank you, and I believe I understand this part. 

So when itemizing on Schedule A, this will carry over to my state taxes as well?

[AmyC]

Yes, the deductions you enter on the federal will carry over the correct parts for your resident state to allow the gambling loss up to the amount of winning.

See Can You Claim Gambling Losses on Your Taxes? - TurboTax