Entering Gambling Losses in TurboTax

[SColvin]

I entered the negative amount as you described.  Only the positive entry from the 1099 MISC appears in line 8 on the 1040 and line 8z of schedule 1.  The negative amount, which I input per your instructions, appears only on the Wages, Salaries & Tips Worksheet, line 7.  Have you actually tried this yourself?  It doesn't work, no matter how many times you give me the same instructions.

[LindaS5247]

You would only enter your gambling losses if you are itemizing your deductions. ‌You would only itemize your deductions if all of your itemized expenses exceed what you are getting for your Standard Deduction. 

When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses, after you input your gambling winnings.

Because you received Form 1099-MISC instead of a W2-G you should enter enter your winnings in the gambling section.  To enter your gambling winnings and claim the losses that go with the winnings, you can select the following:

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 W2G do you want to work on?
6. Select "WE didn't receive a W2-G.

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 W2G do you want to work on?
6. Select "WE didn't receive a W2-G" and "Continue"

If it is advantageous for you to itemize your deductions, TurboTax will properly report your gambling losses.  They will go on Schedule A on line 16, under "other". 

Your gambling losses will flow to your state return. Your state may have different rules for gambling losses.

You will still have to enter your Form 1099-MISC.

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 1099-Misc instead of w2-g"  
• Enter the amount of the 1099-Misc as a negative number. 

See screen shot below.  This shows the -$5000 as other earned income.

Your screens will look something like this:

Enter your gambling winnings under "Less Common Income" "Prizes, Awards and Gambling Winnings"

Select "I (or we) did not receive a W-2G."

Enter your gambling winnings:

Enter your gambling losses. Note: You must itemize your deductions to deduct your gambling losses.

Enter the income as -$5,000

Form 1040 shows the -$5000.

Click here for more information on Form 1099-MISC

Click here for information on entering Form 1099-MISC

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