It could be that your winnings were not sufficient to warrant a W-2G, and therefore, the company issued you a 1099-Misc rather than a W-2G. In your situation, the 1099-Misc amount and the W-2G amount are considered “other income” on your Form 1040. Regarding your W-2G, the tax code requires institutions that offer gambling to issue Forms W-2G if you win:
- $600 or more on a horse race (if the win pays at least 300 times the wager amount);
- $1,200 or more at bingo or on a slot machine;
- $1,500 or more at keno;
- $5,000 or more in a poker tournament.
Table games in a casino, such as blackjack, roulette, baccarat, or craps are exempt from the W-2G rule. This doesn’t mean you don’t have to claim the income and pay taxes on it if your winnings aren’t enough to warrant the tax form. It just means that the institution won’t send a Form W-2G.
Regarding where and how to report your 1099-Misc and W-2G, if you are using TurboTax online, in the Income & Expense category, scroll down the page to Less Common Income, and click on the drop-down arrow to open the window. Select Miscellaneous Income, and respond to the questions that appear on the pages that follow.
Regarding gambling losses, such losses are indeed tax deductible, but only to the extent of your winnings and there is the requirement to report all the money you win as taxable income on your return. But here is the major point to consider, the deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses, but you still need to report your winnings even if you take the standard deduction.
If you are using TurboTax Online, here are the steps to follow to preview your Form 1040 so you can check to see that your gambling winnings are correctly reported on line 8 of your Form 1040:
Open or continue your return.
- Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
- With the Tax Tools menu open;
- Select Tools.
- Next, select View Tax Summary in the pop-up.
- Then Preview my 1040 in the left menu.
Below is a link to a TurboTax article that addresses gambling winnings and taxes which you might find helpful.
Can You Claim Gambling Losses on Your Taxes
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