I have an issue with reporting gambling wins/losses.

[user17717330754]

The easy part is submitting the total wins and the total losses, but then several casinos mailed me 1099-MISC forms (not all of them). The 1099-MISC data is only the total of the wins (no losses are accounted for) so this doubles the wins for these casinos and a much larger tax burden.  

How do I either submit the losses for these 1099-MISC or how do I deduct the amounts on the 1099-MISC?  I heard from other sources that I can enter it into Misc Income/1099-A/1099-C as the negative amount on each of the 1099-MISC.  Is this an appropriate method of offsetting these specific 1099-MISCs?

[CesarJ]

If you are unable to find the option to report your gambling winnings, it's likely because you need to navigate to the specific gambling section within TurboTax.

Typically, gambling winnings should be reported on a W2-G, not a 1099.

To correctly enter your gambling winnings and claim related losses, follow these steps:

1. Select Income.
2. Choose Less common Income.
3. Go to Prizes, Awards, and Gambling Winnings.
4. When prompted about a W2-G, select No.
5. Enter your winning amount.
6. On the subsequent screen, enter your corresponding losses.

[user17717330754]

Thanks a lot Cesar for answering my question!

You are correct that casinos (from online gambling) should provide W-2Gs but they do not do that.  Only a few provided 1099-MISC forms.  The ones that didn't provide information said it is my responsibility to provide the information to the IRS.

So now that I have provided the total winnings (and losses) AND have entered the 1099-MISC data how do I balance the winnings vs losses?  I have to offset the winnings from the MISC or it changes my taxes significantly!

Thanks again for taking the time to answer my questions!!

[LindaS5247]

You will enter all of your gambling winnings into TurboTax. Your winnings and losses need to be separated and reported individually. You cannot offset your winnings from one day with your losses from another day in order to report your net winnings or losses. 

Please see these links for additional information: Can You Claim Gambling Losses on Your Taxes?   Gambling income and losses

You can only deduct your gambling losses if you itemize your deductions. You will only itemize your deductions if all of your itemized expenses exceed what you are getting for your Standard Deduction.   If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses.

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

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

Keep in mind that gambling losses are only deductible to the extent of your winnings. ‌You are required to report all the money you win as taxable income on your return. 

The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings. 

If you have a Form 1099-Misc, you will enter it as follows:

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

If you have to remove income that was "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.

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

Click here for Diary or Similar Record

Please return to Community if you have any additional information or questions and we would be happy to help.
 

[user17717330754]

Thanks Linda!!!

That is exactly an answer for what I have been searching to solve this dilemma.  Thank you so much for the quick AND helpful response!!!