Yes, you need to include the winnings on your return even if the net paid is under $1,000.
To enter your W2G Winnings), please follow these instructions:
- Sign In to TurboTax Online
- Click "Take Me to my Return"
- Click "Federal" from the left side of your screen
- Scroll down to "Less Common Income" and click "Show More"
- Click "Start" to the right of "Gambling Winnings" and click "Yes"
- From here TurboTax will walk you through entering your Gambling Winnings, with or without a Form W2G
- As you walk through this section, you will also be asked about your Gambling Losses
If you itemize your deductions on Schedule A, you can take a deduction for your gambling losses up to the amount of your winnings. For more information, check out this TurboTax article: Deducting Gambling Losses.