I've gathered bits and pieces of this through various threads, still with no clear answers as to how to enter it IN TURBOTAX:
I need to know where in TurboTax I choose to select the Session Method for gambling wins/losses for casual gamblers, not Professional gamblers. My state (Wisconsin) requires the Session Method to be used; therefore, I am required to elect the Session Method for the Federal portion as well.
I have documented wins/losses and W2G's in the following format/example:
Date | Establishment | Wager Type | Beginning Cash | Ending Cash | Session Win/Loss | Session W2Gs issued |
1/1/2024 | XYZ Casino | Slot | $100 | $100 | $0 | $2,000 |
As you see, I started my session with $100 cash, won $2,000 which triggered a taxable W2G, continued gambling in the same session and lost the $2,000 I won, and walked out of the casino with what I started, $100. My net session gain was $0.
My question:
I have dozens of gambling sessions (like the example above) throughout 2024. I need to enter my total gains for those gambling sessions in TurboTax. Federal publication 529 states, "You must report the full amount of your gambling winnings for the year on your Schedule 1 (Form 1040). You deduct your gambling losses for the year on your Schedule A (Form 1040)." It also states on Federal publication 525, for W2G’s received, “Include the amount from box 1 on Schedule 1 (Form 1040), line 8b.”
If my total net Session wins are the same as my total net Annual wins for 2024, there really isn’t an impact on the Federal portion. However, I must elect to use the Session Method on the Federal portion in order to use the Session Method on the State (Wisconsin) portion. Where in TurboTax do I elect the Session Method??
Going a step further to the State portion (once I make the declaration of the Session Method on the Federal portion); Where do I adjust my income IN TURBOTAX STATE portion to account for any offsetting losses against the W2G income (as shown in the example above)?
