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How do I report different gambling winnings for federal and NJ purposes?

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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1 Best answer

Accepted Solutions
AmyC
Employee Tax Expert

How do I report different gambling winnings for federal and NJ purposes?

Follow these steps to enter the gambling winnings in the federal section:

  1. go to wages and income
  2. scroll down to less common income
  3. locate gambling winning and start/ edit
  4. Select NO w2G, continue
  5. Select Yes and enter federal taxable amount
  6. select correct option for other prizes, continue
  7. enter the gambling loss- it will not go on your federal since you take the standard but will carry over to your state

The state nets the amount correctly and no further entries are needed.

 

 

 

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View solution in original post

2 Replies
AmyC
Employee Tax Expert

How do I report different gambling winnings for federal and NJ purposes?

Follow these steps to enter the gambling winnings in the federal section:

  1. go to wages and income
  2. scroll down to less common income
  3. locate gambling winning and start/ edit
  4. Select NO w2G, continue
  5. Select Yes and enter federal taxable amount
  6. select correct option for other prizes, continue
  7. enter the gambling loss- it will not go on your federal since you take the standard but will carry over to your state

The state nets the amount correctly and no further entries are needed.

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How do I report different gambling winnings for federal and NJ purposes?

Clever!  Thanks.

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