Wisconsin gambling winnings

[Merlynda]

I am a WI resident. Gambled online. Received W-2G. Entered W-2G on fed form. Itemized deductions on fed Schedule A for Gambling losses. Have detailed spreadsheet of my gambling sessions results and other docs to prove winning amount. 

 I added up my win gambling sessions in my spreadsheet 

example:

W-2G reports $72000 in winnings

My session logs report $12000 in winnings. 

So, on federal I would report W-2G number under gambling winnings and $60000 in losses on Schedule A

This equals the $12000 in gambling session wins. 

HOW DO I DO THIS ON WISCONSIN TAX FORMS?

Thank you to anyone who can answer 

[MarilynG]

If you are a Wisconsin resident, you don't have to report your gambling activity separately.  The amounts are included in your Federal AGI, which flows into your Wisconsin return. 

If you paid taxes to another state on your winnings, in the Wisconsin interview you can indicate the state/amount of tax paid to another state.

[Merlynda]

Using that method brings over the entire W-2G amount into Wisconsin form 1. ($72000 in simplified example)

I properly used the session method to determine gambling wins. ($12000 in simplified example).

I am allowed a Wisconsin income adjustment of $60000.

No one seems to know where I put the $60000 income adjustment. 

So, I put it on Wisconsin Schedule SB line 50 (other) and attached my session gambling log 

[dhuber24]

I'm also looking for an answer to this?

I don't understand why the "experts" aren't understanding the difference between federal and state treatment of gambling wins/losses?

Please stop saying the Federal entries pass to the state.. the losses DO NOT. Wisconsin requires losses only at the session level. Where do these session adjustments get entered on the STATE return??

[LindaS5247]

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's 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}

[dhuber24]

@LindaS5247 

You said, "Be sure to use the session method when entering your federal information for this to properly flow to your Wisconsin return." 

My question: Where do I elect to use the session method in TurboTax??

2nd thing, you said, "Also, you are not allowed to net your "total" losing sessions with your "total" winning sessions for purposes of figuring your Wisconsin taxable income."

My question: I understand the total session losses can't be netted with session wins. I can however, report that I always leave the casino with the amount I started with, which is a net of $0 for each session. Which means that my total session wins are $0, even though I have W2G wins. My state income needs to be adjusted to reduce the total wins (up to the W2G amount) for each session. Where do I make that adjustment IN TURBO TAX.

Thanks!

[dhuber24]

New information - now I just need to know how to enter this is TurboTax!
Directly from the Wisconsin Department of Revenue:

"Since you are allowed to deduct losses for your federal return but not for the state return, there would be a difference in the reported federal adjusted income. To account for this difference, you would need to create a "Wisconsin Only" form 1040 Schedule 1. Report only the winnings on line 8 of the 1040 Schedule 1. The totals of the 1040 Schedule 1 will then flow to line 8 of the 1040. This will create a new federal adjusted gross income, as losses will not be included.

The new adjusted gross income of the 1040 will flow directly to line 1 of the Form 1."

When filing your return, submit both versions of the federal income tax return, plus the schedule calculating the session method."