1042S

[CD61]

I received form 1042-S for Gambling winning.  Where do I report this income in Turbo tax?

[Vanessa A]

To enter your gambling winnings and claim the losses that go with the winnings, you can select the following:

• Income
• Less common Income
• Prizes, Awards, and Gambling Winnings
• Say No, you did not receive a W2-G, hit next
• Enter your winnings
• On the next screen enter your losses.

In order to claim gambling losses, you must itemize your return. So even if you left it ride in your account and then lost it all betting it again, you would need to include the winnings as income and then itemize your return to claim any of the losses. 

Other Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your gambling losses. 

The 2023 Standard Deductions are as follows:

• Married Filing Joint (MFJ)              $27,700
• Married Filing Separate (MFS)      $13,850
• Head of Household (HOH)             $20,800 
• Single                                                     $13,850                                

Blind and MFJ or MFS add $1,500

Single or HOH if blind add $1,850

[CD61]

Since I ( actually, it is my husband 1042S, we file joint return) received 1042S for gambling winning.  Should I enter under Prizes, awards and gambling winnings or under Miscellaneous Income? Note: 1. my tax liability differs because I receive a tax break by itemizing with Schedule A

2. A 30% tax rate was withheld for the winning

[AmyC]

Use prizes, awards and gambling winnings to report the income.  Sch A is to report losses incurred gambling and can help reduce your tax liability.

Enter the tax withheld / paid:

1. Go to the federal deductions and credits section
2. Scroll down to estimates and other taxes paid
3. Select Other Income Taxes, start
4. Scroll down to Other Income Taxes Paid in 2023
5. Select Withholding not already entered on a W-2 or 1099, start
6. Select yes
7. Enter amounts and information in appropriate boxes
8. Continue