Yes, we can help. First it's important to know that all gambling winnings are taxable. However, you are allowed to reduce the income if you can itemize deductions. You must have a record of purchases even if it is with your credit card. A credit card is like a loan of sorts and you actually spend the money you use even though you must pay it back. It was money you had access to just like anything you might purchase with a loan. A car, clothes or home as example.
Gambling Losses
You may deduct gambling losses only if you itemize your deductions and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as 'Other Itemized Deductions'.
Open your TurboTax Online return:
- Click on Tax Home (left panel) > Select income > Select Tax Tools (left panel) > Select Tools > Topic Search
- Type gambling > Select gambling income not on a W-2G > Go
- TurboTax will take you to the section to enter your winnings and your losses
You can also use the steps below, whichever is best for you.
Less Common Income:
- Go to the Income section of TurboTax
- Scroll to Less Common Income > Select Prizes, Awards, and Gambling Winnings
- Select Start or Update/Review > Continue to enter your winnings and your losses
- TurboTax will carry the winnings and the losses to the appropriate place on your tax return.
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