New York State Gambling Loss Deduction

[kman61576]

I am working on my return. I am a PA resident but need to file a NY state return d/t gambling winnings. I am not receiving an option to deduct my gambling losses for NY after I enter my income. According to the NY tax site, I should be entering this information on form IT-196, but nowhere within the Turbotax software am I getting an option to enter this information. Is this form not available yet, or is there another area within my return that I need to be entering this? I have already put in the amount to be deducted on my federal return and am surprised that this hasn't carried over. 

[Anonymous_]

@Mike9241 

[Opus 17]

If the gambling losses are less than your NY standard deduction, it will be better to use the standard deduction than the itemized deduction.

It appears that, on the NY IT-203 non-resident return, you are entitled to the full NY itemized deduction, and not a reduced or pro-rated amount. (Although this surprises me.)

https://www.tax.ny.gov/forms/current-forms/it/it203i.htm

@TomD8 ??

New York State standard deduction table

Filing status	Standard deduction (enter on line 33)
(1) Single and you marked item C Yes	$3,100
(1) Single and you marked item C No	$8,000
(2) Married filing joint return	$16,050
(3) Married filing separate return	$8,000
(4) Head of household (with qualifying person)	$11,200
(5) Qualifying surviving spouse	$16,050

[Marcusak01]

Hello! Just wanted to follow up on this one. I am having the same issue with TurboTax. I see a spot on the itemized deduction form, but do not see anywhere to enter this info online. 

[LindaS5247]

You would only enter your gambling losses if you are itemizing your deductions. ‌You would only itemize your deductions if all of your itemized expenses exceed what you are getting for your Standard Deduction. 

When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses, after you input your gambling winnings from Form W-2G.  

If it is advantageous for you to itemize your deductions, TurboTax will properly report your gambling losses. ‌They will go on Schedule A on line 16, under "other". This information will flow through to your New York tax return.

To enter your Form W-2G in TurboTax you would enter it under "Less Common Income"

Then you would follow the screens and it will ask you about your gambling losses. ‌This is where you will input them.

Keep in mind that gambling losses are only deductible to the extent of your winnings. ‌You are required to report all the money you win as taxable income on your return. 

The deduction is only available if you itemize your deductions. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses.

The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings. 

Your winnings and losses typically need to be separated and reported individually. You cannot offset your winnings from one day with your losses from another day in order to report your net winnings or losses. The IRS does allow you to net your wins and losses on the same day for the same type of wagering if you meet certain requirements. 

For New York income tax purposes, gambling loss deductions are limited to the amount of gambling income reported on your return. Other miscellaneous deductions are claimed on Form IT-196, lines 29 through 37.

Click here for additional information on gambling losses and what documentation is required.

Click here for additional information on itemized deductions.

Click here for additional New York information on itemized deductions.

[MayaD]

No. If you are a NY nonresident individual, estate, or trust, or a part-year resident individual or trust, you are subject to tax on your New York source income.

Your New York source income does not include: your gambling winnings, other than lottery winnings, unless you are engaged in the business of gambling and you carry on that business in New York State;

New York Source Income of Nonresident

[MayaD]

If you are a New York State nonresident you must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:

• You are a nonresident with New York source income and your New York adjusted gross income Federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
• You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
• You want to claim any of the refundable or carryover credits available.
• You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

If you Need to file NY non-resident return

• You want to do is make sure you've filled out the About me or Personal Info section correctly.
• Only report the income attributable to the nonresident state.
• If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state.

For more information check: How do I file a nonresident state return?