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Losses from lottery are not permitted as a deduction on the Wisconsin return. Please see Pub 600 (page 4, Section E) for additional information.
I wasn't asking about a deduction. I'm asking about reducing my taxable income by the amount of the losses incurred after each gambling session, which is absolutely allowed for Wisconsin. But there is nowhere in TurboTax (that I have found) to enter those session wins/losses.
Enter all of your gambling winnings and losses on the federal return (even if you are taking the standard deduction) and TurboTax will transfer the info to your state return. Then on your state return, you make adjustments if necessary.
Search for gambling losses in the Search bar, then use the Jump to link to get to that section in the federal interview. After you enter the information about your winnings, you will asked about losses. After recorded on the federal return, you go can back to your WI return.
Reporting Gambling Losses on your Return
Thank you for your repose, but once again this doesn't answer my question. I am specifically asking where the adjustments should be made on the Wisconsin state return?
I have already completed the Federal part, adding all of my gambling income. The "losses" I entered in my Federal return net out my gains to $0 taxable. However, these full-year losses are not allowed in Wisconsin, rather they require session gains/losses. So I need to know where in the Wisconsin return I can make adjustments for session losses.
There is no place to enter your losses on your Wisconsin return because it flows from your federal return. The same method is required to be used for both federal and state returns. Be sure to use the session method when entering your federal information for this to properly flow to your Wisconsin return. See page 9, under Casual Gambler (Nonprofessional) of the Wisconsin Department of Revenue Publication "Wisconsin Taxation of Gambling Income", click here.
Taxpayers who gamble casually in Wisconsin (professional gamblers will report their gambling winnings and losses on a Form Schedule C) will use the "gambling session" method to determine gains and losses for tax reporting. However, you do not directly enter gambling losses on your Wisconsin state tax return.
It sounds like you have documented your gambling sessions.
Your net gain or loss for each session is determined. The net gains from all winning sessions for the year are reported in your Wisconsin taxable income.
For sessions that have a net loss, those losses are not deductible for Wisconsin income tax purposes. In other words, your gambling losses will only reduce your winnings for sessions in which there is a net gain.
Also, you are not allowed to net your "total" losing sessions with your "total" winning sessions for purposes of figuring your Wisconsin taxable income.
There is a good example of how this works on page 2, under the section "Can I deduct my gambling losses in Wisconsin?", click here.
{Edited 01/27/2025|12:52 PM PST}
We're getting closer to answering my question.. Thank you for the response, Linda!
So if I decide to use the session method, where would I enter session wins/losses in TurboTax?
Here is how I track sessions:
Date | Establishment | Beginning Cash | Ending Cash | Win/Loss | W2G's |
1/1/2024 | XYZ Casino | $100 | $0 | ($100) | $1500 |
I understand that while I show a loss for the day, I can only net it to $0. This documentation would be used to say "I started with $100 bucks and left with nothing, even though I hit a taxable jackpot of $1500".
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