How do I place my W2-G income (gambling winnings) in my Business Schedule C (I'm a professional gambler)?

[ColeenD3]

Please see this post from HalAl:

Yes. If you are filing Schedule C, you do not enter the W-2Gs at the W-2G screen. Enter at Business Income. You will not get the offsetting entry box. The W-2G screen is not for professional gamblers. Losses will be entered as business expenses. There is no category on Schedule C; so enter losses as other expenses.

Wagering losses still cannot exceed gambling winnings. Any excess gambling losses over gambling winnings cannot be carried forward or carried back to offset gambling winnings from other tax years.

Gambling

[Jogaming]

How do I receive credit for the taxes withheld on the W-2g when reporting my income on the schedule c?

[RaifH]

To receive credit for the taxes withheld on Form W-2G that you are reporting as self-employment income:

1. With your return open, go to Federal > Deductions & Credits > Estimates and Other Taxes Paid > Income Taxes Paid.
2. Click Start next to Withholding not already entered on a W-2 or 1099 under Other Income Taxes Paid in 2021.
3. Click Yes.
4. Enter your federal and state withholdings, if applicable. Click Add another if you want to report the withholdings from each W-2G separately. 

[Trice9977]

Did you get a return for both fed and state? Were you audited?

[DaveF1006]

Yes, you can declare your W2G income as business income if you are a professional gambler.  Go to federal>wages and income>self employment.

After you are working in this section and enter the profile for your gambling business and then the program will ask you about income. Here you will indicate this is other self-employed income. 

The next screen will ask what type of income is it.  Here you will indicate this is W2G Gambler income and the amount. It is critical to note the income came from a W2G because if it isn't mention, the IRS may question you later on asking why you didn't report your W2G as other income in your return. 

To receive credit for with withholding, please follow the steps RaifH suggests in his post above.

@suzanneelizabeth