Gambling losses offset

[Sararod18]

For many years I would enter my gambling winnings, and on the next screen it would ask me to enter my gambling losses, the amount owed in RED would be reduced once I entered the losses which equal my winnings.  For the past 3 years or so, the losses would not reduce the gambling liability (winnings), it remains the same.  Previously, once I entered the losses the amount owed in RED, it would go back to the same amount prior to entering the winnings, meaning it would offset in dollars.  I do not use the standard deduction, I itemize all deductions.

Is there a cap on income where if you make too much you no longer get to write off losses?  or has the program changed?  

[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/

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

[ThomasM125]

There is no cap on the reporting of gambling winnings. Gambling losses are limited to the amount of your gambling winnings. Winnings are reported on your Form 1040 as income and the associated losses, limited to the amount of your winnings, are deductible as itemize deductions. So, they are reported separately on your tax return so that may be what is confusing you.

You can deduct travel costs associated with your gambling if the primary purpose of the trip was to gamble. You can learn more from this TurboTax article.