1099-misc (for gambling drawing win) entry will not allow gambling loss against it. I am itemizing. How do I fix that? Should I delete entry and enter it elswhere?

[verfurthsteven]

Maybe enter it in other income w/no W@G received? Will the IRS see it if the 1099-MISC is deleted and amount entered elsewhere?

[xmasbaby0]

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

Gambling winnings are taxable income.  Losses are an itemized deduction.  If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.

https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

2025 STANDARD DEDUCTION AMOUNTS

SINGLE $15,750  (65 or older/legally blind + $2000)

MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600)

MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600)

HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)

[bl275]

So, if I received a 1099-MISC for gambling winnings, I don't enter that as a 1099-MISC?  Instead, I enter it as gambling winnings without a W2-G?

[MonikaK1]

If you received a 1099-MISC for the gambling winnings, you can enter them in the 1099-MISC section.

Under current tax law, you can only deduct gambling losses to the extent of winnings reported, and only if you itemize your deductions, as also noted by @xmasbaby0, unless you are in business as a professional gambler. 

If your total itemizable deductions including the gambling losses (limited to winnings) don't total more than your standard deduction, you can't claim any additional amount for the losses and you would be limited to the standard deduction.

This article provides more helpful details on this topic. 

@verfurthsteven 

@bl275 

[2539]

TurboTax, you are missing the point of this question and similar question in other posts. 

1) If you input Gambling win as part of a 1099-MISC there is no way to input your losses in the Step-By-Step guide for 1099-MISC.

2) If you input Gambling win as part of a 1099-MISC and manually input the losses in Misc Dedns Worksheet, it flags as an error.

3) If you input Gambling win/loss as reported on a 1099-MISC in the W-2G Step-By-Step guide and the 1099-MISC you are double counting.

4) If you input Gambling win/loss as reported on a 1099-MISC in the W-2G Step-By-Step guide and skip the 1099-MISC input THEN WE ARE WORRIED THAT THE IRS WILL FLAG IT AS MISSING.

What is the correct and legal and less likely way to get audited to input a 1099-MISC Gambling Win and it's respective losses in TurboTax?  

We all understand that we have to ITEMIZE our deductions and that we can only deduct losses up to the amount of WINs.  That is not the issue or question at hand!

[KrisD15 · Accepted solution]

Winning a "prize" at something like a "makeshift" church casino or something of that nature, may not be considered "gambling" by the IRS. The organizer probably doesn't hold a gambling license, doesn't tally losses, and might even be exempt on tax if they are a nonprofit. 

Regardless, the Winner will need to claim the cash or value of the prize as income. 

YOU HAVE THE OPTION: Since the "prize" is reported on Form 1099-MISC, that form can be entered and it will be listed as Other Income on schedule 1 and that will be the end of it. 

HOWEVER, if you're sure it should be considered as "Gambling Winnings" and that you can offset that gain with gambling loss, you can enter it as Gambling Winnings and then also have the option to enter your substantiated gambling losses. 

The gambling losses can offset the gain on your 2025 return, but cannot result in a loss. 

Starting in tax year 2026, only 90% of winnings can be offset with losses. 

Since the winnings are reported on Form 1099-MISC, and if you want to report that as gambling, and you also want to enter the 1099-MISC so that it appears on your return,  you will have to do a couple entries in the TurboTax program.

First enter the amount of winnings listed on the 1099-MISC in the gambling section. 

• Income / Wages & Income
• Less Common Income
• Prizes, Awards, and Gambling

Next enter your losses in the same section. 

You do need written evidence of the losses if you were to be audited. 

Next, enter the 1099-MISC

• Income / Wages & Income
• 1099-MISC and Other Common Income
• Income from Form 1099-MISC   START or UPDATE
• Be sure to indicate that it was not for self-employment by selecting "Not like work" "Not to make money"

Finally, enter and "adjusting entry" to "zero-out" the 1099-MISC (since you are claiming that same income in the W-2G section)

• Income / Wages & Income
• Less Common Income
• Miscellaneous Income, 1099-A, 1099-C   START or UPDATE
• Other reportable income (the last option if using Desktop)    START or UPDATE
• Select "Add"
• Enter something like "Gambling reported on 1099-MISC"  and the amount AS A NEGATIVE number to adjust for (zero-out) the 1099-MISC

This will result in the gambling winnings being reported on your Schedule 1 line 8b.

The amount reported on your 1099-MISC will be on Schedule 1, as well as also a negative adjusted on Schedule 1 line 8z.

The loss is listed on Schedule A and only if you choose to Itemize your deductions rather than take the Standard Deduction. 

@verfurthsteven 

@2539 

@bl275

[2539]

Thank you 100%, finally a complete explanation on how to report it.

FYI, most of these from all the message boards are related to Online Gambling Casinos that are hiding as Non-Gambling establishments and send us 1099-MISC instead of W-2G's.  

[Jasminspd]

Yes thank you I received one too and I plan to amend my tax return because this took a huge chunk of my refund and I’ve lost way more than what the 1099 misc form states  couldnt find a clear answer . They found a loop hole which is super low down . 

[Pevans]

Did you figure out how to do this? It won’t let me create a negative number 1099-MISC amount.

[ThomasM125]

You cannot deduct your gambling losses in the section where you enter your Form 1099-Misc. You first enter the Form 1099-MISC, then go to the Wages and Income section, then Other Common Income, then Prizes, Award, gambling winnings. Enter you gambling winnings again and losses in that section.

The last step is to back out the Form 1099-Misc entry you made by making a negative adjust to "Other Income" as follows:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter "mis-reported 1099-MISC income" or something similar for the description and the gambling winnings as a negative number

@Pevans 

[Pevans]

It’s telling me that I can’t have other earned income be less than 0. So now what? 

[DaveF1006]

The goal is to move that income into the Gambling Winnings section so TurboTax "unlocks" the ability to apply your losses against it.

1. Delete the 1099-MISC entry: Remove it from the "1099-MISC" section. If you leave it there, the software won't let you offset it with losses.
2. Report it as Gambling Winnings:
3. Go to Wages & Income -> Less Common Income.

• Select Prizes, Awards, and Gambling Winnings.
• When asked if you received a W-2G, say No.
• Enter the description (e.g., "Drawing Win from 1099-MISC") and the amount.
• Enter the Losses: Immediately following that entry, TurboTax will ask for your Gambling Losses. Enter your losses there (limited to the amount of the win).

Gambling losses are reported as itemized deductions. If you don't have enough deductions to itemize thus take the standard deduction, you won't be able to claim your losses.

[Pevans]

Okay but I still have to report the 1099-MISC or else it will be showing as missing, so how do I negative out that 1099 if it won’t allow me to put a negative number? 

[LindaS5247 · Accepted solution]

Yes, you should report your Form 1099-MISC. You can enter your Form 1099-MISC as follows and then you will report your negative amount under Miscellaneous Income as described below.

To enter a Form 1099-MISC into TurboTax you can:

1. Click on the "Search"  icon
2. Enter "1099-MISC" in the search box  
3. Select "Jump to form 1099-MISC"
4. It will take you to a screen that says, "Did you get a 1099-MISC?
5. Select "Yes"
6. Enter your Form 1099-MISC information
7. Answer all follow-up screens

Then remove the income so it is not double-reported, you will: 

• Go to "Wages & Income"
• Scroll down to "Miscellaneous Income"
• Select "Start" or "Update" next to "Other Income not already reported on a Form W-2"
• On the screen "Other Wages Received"
• Select "Yes" to "Did you receive any other wages?"
• Skip the next three screens
• Select "Yes "to "Did you earn any other wages?"
• Select" Other" on the screen that says "Enter Source of Other Earned Income" then  select "Continue"
• For description enter "gambling income reported on Form 1099-Misc instead of W2-g"  
• Enter the amount of the 1099-MISC as a negative number

Because you received Form 1099-MISC instead of a W2-G you should first enter your winnings in the gambling section.  To enter your gambling winnings and claim the losses that go with the winnings, you can use the steps listed below. 

To enter your gambling winnings in TurboTax Desktop, you will do as follows:

1. Select "Wages & Income"
2. Click on "I'll Choose What I Work On?"
3. Scroll down to "Less Common Income"
4. Click "Start" by "Prizes, Awards and Gambling Winnings"
5. On the screen "Whose W2-G do you want to work on?
6. Select "We didn't receive a W2-G. 
7. Follow through the screens and answer all questions related to your gambling winnings/losses.

To enter your gambling winnings in TurboTax Online you will do as follows:

1. Click on "Wages & Income"
2. Scroll down the page to "Less Common Income"
3. Click the (down-facing) caret next to "Less Common Income"
4. Click on "Start" next to "Gambling Winnings"
5. On the screen "Whose W2-G do you want to work on?
6. Select "We didn't receive a W2-G" and "Continue" 
7. Follow through the screens and answer all questions related to your gambling winnings/losses.

Click here for information on entering Form 1099-MISC

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

Click here for How to Pay Taxes on Gambling Winnings and Losses

Click here for Topic no. 419, Gambling income and losses

Please return to Community if you have any additional information or questions and we would be happy to help.