You are only able to deduct gambling losses to the extent of gambling winnings. So you will have to report all the money you win as taxable income on your return. And the amount of gambling losses that you can deduct can't exceed the winnings you report as income.
When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses. Keep in mind that the deduction for your losses will only be available if you are eligible to itemize your deductions. You can't reduce your tax by your gambling losses, if you claim the standard deduction.
NOTE: You can't just deduct your losses without reporting any winnings.You need to first owe tax on winnings before a loss deduction is available.
- Go to Federal Taxes tab ( Personal Tab in Self-Employed)
- Click Wages & Income
- Select I'll choose what I work on
- Then go to Less Common Income
- Click Gambling winnings
- Once you have entered in your gambling winnings click on Continue. Once you finish the questions for this area you will then be able to enter your gambling losses.
