Turbotax Home and Business handling of gambling losses

[zoeyrog]

I live in the state of Oklahoma and am trying to use TurboTax Home and Business 2024 for the tax return.

During 2024, I had $563,478 in Gambling Winnings and $557,042 in gambling losses. After including W-2 wages, other income sources and other Schedule A deductions Turbotax Home and Business calculates Form 1040 line 11 “Adjusted Gross Income” to be $580,015 and line 15 “Taxable Income” as $19,493.

The problem is that TurboTax Home and Business populates Oklahoma Residential Income Tax Return form 511 line 1 “Federal adjusted gross income (from Federal 1040) as being  $580,015. There is no line item on Oklahoma Subtractions “Schedule 511-A” to account for gambling losses. Consequently, Turbo tax calculates a Oklahoma due of $26,176 TAX

There appears to be no work around in Turbo tax since Turbo Tax Home & Business will not accommodate using Schedule 1 2024 by reporting Gambling winnings on line 8b and reporting losses as  a negative number on line Z and referencing the appropriate IRS revenue procedure.

In summary I wasted $100 on Turbotax Home and Business 2024 unless I’m overlooking something.

Any help is appreciated

[KeshaH]

Oklahoma allows a gambling loss deduction as an itemized deduction not a subtraction adjustment. However, unlike the federal itemized deductions, Oklahoma's itemized deductions other than medical expenses and charitable donations are limited to $17,000. This is why your Oklahoma tax liability is higher than expected considering your significant gambling losses.

It seems there have been several attempts to pass legislation exempting gambling winnings from the $17,000 cap but none of that legislation has passed.

[Edited 3/13 @ 6:02 am]