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hilikus2
New Member

How do I handle a 1099-Misc from online gambling winnings? Do I need to file state taxes in NY as well?

I'm a contractor so I already filed a 1099-Misc. Do I file the winnings as a separate business? I'm from SC so do I need to file two separate state taxes, SC and NY?
1 Best answer

Accepted Solutions
MichaelMc
New Member

How do I handle a 1099-Misc from online gambling winnings? Do I need to file state taxes in NY as well?

No, do not file your gambling winnings on a Schedule C (Form 1040). Gambling winnings should be reported as Other Income on Schedule 1 (Form 1040), line 21. Follow the instructions below to make the income appear on line 21.

Your gambling winnings will be taxed both by your resident state and by the state of NY. You will need to file a non-resident return for NY. Most states allow residents to claim a credit for any taxes paid to another state, to mitigate the impact of double taxation.

TurboTax recommends that you prepare the non-resident tax return first, to allow your home state tax return to correctly compute the tax credit.

Reporting 1099-MISC that is not self-employment income

  • Under the Wages & Income tab (or Personal Income tab in TurboTax Home & Business) scroll down to Other Common Income.
  • Select the start/update button next to Income from Form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
  • Enter the 1099-MISC exactly as printed, and then Continue.
  • Enter the reason you got this money – be it scholarship, bonus, gambling winnings, hobby income, etc. Click Continue.
  • Select None of these apply, then Continue.
  • Select No, it didn’t involve work…, and click Continue.
  • Select ONLY the tax year for which this specific Form 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Click Continue.
  • Select "No, it didn’t involve an intent to earn money," then click Continue.
  • Select No, then click Continue.
  • Click the DONE button, and that does it.

View solution in original post

1 Reply
MichaelMc
New Member

How do I handle a 1099-Misc from online gambling winnings? Do I need to file state taxes in NY as well?

No, do not file your gambling winnings on a Schedule C (Form 1040). Gambling winnings should be reported as Other Income on Schedule 1 (Form 1040), line 21. Follow the instructions below to make the income appear on line 21.

Your gambling winnings will be taxed both by your resident state and by the state of NY. You will need to file a non-resident return for NY. Most states allow residents to claim a credit for any taxes paid to another state, to mitigate the impact of double taxation.

TurboTax recommends that you prepare the non-resident tax return first, to allow your home state tax return to correctly compute the tax credit.

Reporting 1099-MISC that is not self-employment income

  • Under the Wages & Income tab (or Personal Income tab in TurboTax Home & Business) scroll down to Other Common Income.
  • Select the start/update button next to Income from Form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
  • Enter the 1099-MISC exactly as printed, and then Continue.
  • Enter the reason you got this money – be it scholarship, bonus, gambling winnings, hobby income, etc. Click Continue.
  • Select None of these apply, then Continue.
  • Select No, it didn’t involve work…, and click Continue.
  • Select ONLY the tax year for which this specific Form 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Click Continue.
  • Select "No, it didn’t involve an intent to earn money," then click Continue.
  • Select No, then click Continue.
  • Click the DONE button, and that does it.

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