Gambling drawing winning received 1099 not W-2G

[bentak]

2023 tax return questions
I received a 1099-misc for prize winning at the casino. I have much more losses at the
casino that exceeded the value of the cash prize. This year I filed itemized deductions
option because itemized deductions exceeded the standard deduction. I reported
1099-misc as income, but I couldn’t find where to report as a loss for that amount on
the TurboTax online. Therefore I sent it without claiming as a loss. According to my
friend (CPA), I should have recorded same as W-2G loss. My win/loss statement
shows I lost many times more. I am aware I can only deduct the loss amount up to the
winnings. Should I file an amended return? If I can report 1099-misc same as W-2G,
the difference will be approx. $1600 (refund) .Thank you so much for your help.

[DoninGA · Accepted solution]

Did you use the section in TurboTax to report Gambling Winnings?  If so, you were also asked to enter your losses which would have reported on Schedule A as Other Itemized Deductions on Line 16.

To enter, edit or delete Gambling Winnings and Losses -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Prizes, Awards, and Gambling Winnings, click the start or update button

[DianeW777 · Accepted solution]

Yes, you should file an amendment if you itemized deductions and did not enter your losses.  

You will be able to access and file an amended return now (Form 1040-X). Be sure to read all the instructions carefully, before you begin, so that TurboTax knows the original numbers and the changed numbers for your amendment.

• How to amend (change or correct) a return already filed?
• What is the deadline for filing an amended return?
• How to file an amended return with the IRS

[bentak]

Dear Donin

Thank you so much for your help. 

[trgwila]

Do I enter the 1099 MISC under other common income and include the same amount under gambling winnings? This would be the only way the winning amount could be deducted if the loss was equal to the amount on the 1099MISC.

[DoninGA]

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@trgwila wrote:

Do I enter the 1099 MISC under other common income and include the same amount under gambling winnings? This would be the only way the winning amount could be deducted if the loss was equal to the amount on the 1099MISC.

---

You have to enter the gambling income in the section for gambling income.  When asked for a W-2G just answer No and continue.

Gambling losses can only be deducted up to the amount of the gambling winnings. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

To enter, edit or delete Gambling Winnings and Losses -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Gambling Winnings, click the start or update button

Or enter w2g in the Search box in the upper right of the program screen. Click on Jump to w2g

[trgwila]

I am able to prepare my taxes with 1040 and itemize. I have enough loss to match the amount of the W-2G's. When the 1099 MISC is entered as other income, TurboTax does not allow this amount to be included as a loss. 

Do I select either of these options to enter the amount on the 1099 MISC? 

***Let's check for winnings not reported on a W-2G

Did you or Patricia receive any other gambling or lottery winnings not reported on a W-2G?

Yes

No

Did you or Patricia win any other prizes or awards that didn't come from gambling?

Yes

No

[Vanessa A]

No.  You do not want to select yes to enter the 1099-Misc.  What you can do is enter the 1099-Misc and then go to other reportable income and back the income out.

To enter the 1099 Misc take the following steps:

• Income
• 1099-MIsc under Other Common Income
• Enter the information from the 1099-MIsc
• Continue through and say the work does NOT involve work that is like your main job
• Select the years you received it
• Say no, to did this involve an intent to earn money

Then you will take the following steps to remove the income:

• Income
• Less Common Income
• Miscellaneous Income
• Other Reportable Income
• Answer Yes to Any Other Taxable Income
• Enter the description such as 1099-Misc received for Income that should have been reported on W2-G
• Enter the amount on the 1099-Misc as a negative number. 

[DoninGA]

@trgwila 

Did you or Patricia receive any other gambling or lottery winnings not reported on a W-2G?

Yes

No

Answer Yes

Did you or Patricia win any other prizes or awards that didn't come from gambling?

Yes

No

Answer No

You will be asked to enter the amount of gambling winnings.  On the following screen you will be asked to enter the amount of gambling losses.

[trgwila]

After completing the questions, it appears the amount entered as other income from a prize on the 1099-MISC does not show on Schedule A line 16 as other itemized deductions. Should I enter the amount as W-2G also?

[KrisD15]

Please understand that there are two issues with your situation:

1. You want to enter Gambling Winnings which were not reported with Form W-2G.

2. You have a 1099-MISC that reports "Other Income" but you want to report that amount as Gambling Winning instead.

1. You can enter the amount of gambling that were not reported on Form W-2G by going to 

• Wages & Income
• Less Common Income
• Prizes, Awards, and Gambling Winnings    START or UPDATE
• "Did you receive a W-2G"   "No"
• "Let's check for winning not reported on a W-2G"    "yes"  enter the amount of the 1099-MISC that were Gambling Winnings
• CONTINUE
• Enter your Gambling Losses     DONE

Gambling winnings are on Schedule 1 line 8b

Gambling loss in on Schedule A line 16

2. NOW LETS WORRY ABOUT THE FORM 1099-MISC

The IRS will look for the Form 1099-MISC so you need to report it. 

You already reported the SAME AMOUNT as gambling, so you will 

• a) Enter Form 1099-MISC so the IRS can match it
• b) Back out the income so you are not double-taxed

To do that-

Enter the 1099-MISC Under

• Wages & Income
• Other Common Income
• Income from Form 1099-MISC    START
• Enter the 1099-MISC as it was reported, Type "Gambling" in for the description, Select "None of these apply" for uncommon situations, "NO" not like main job, only got it in 2024,  "NO" no intent to earn money, DONE

THIS GETS THE FORM ON YOUR RETURN, now back out the double income-

• Wages & Income
• LESS COMMON INCOME
• Miscellaneous Income, 1099-A, 1099-C    START 
• Scroll all the way down to the LAST option- Other reportable income   START 
• Type "Gambling winnings reported twice" or so other description the IRS will understand
• enter the amount AS A NEGATIVE AMOUNT (put a minus sign (-)  in front of the number
• Done

The 1099-MISC as well as the negating entry will both be on Schedule 1 line 12

1. You entered the gambling winning where you could also report your loss
2. You entered the 1099-MISC so the IRS can find it
3. You entered a reversing entry to account for the 1099-MISC 

@trgwila 

[Champion727]

This question fit my situation and the answer above from @KrisD15 worked perfectly.