Ihavea 1099 Misc form from a casino how would I enter gambling losses? not on w2g its reported as other income

[FangxiaL]

Regardless of which form the winnings are reported, you can only deduct up to the winnings and you have to itemize to take the deduction. 

Here is a link to Topic No. 419  Gambling Income and Losses.

@REvans2001

[REvans2001]

To simplify my question: Can I just add the 1099misc (from a casino lottery drawing) into line 8c Schdl 1 for gambling income?

If I must show the1099misc on line 8z Schdl 1 then the casino loss deductions get limited by the smaller total W2G's on line 8c. 

My W2G winnings justify itemizing this year.  Your comment that one cannot deduct more losses than winnings is rudimentary common sense. That aspect is the first thing IRS (or anyone) talks about. 

[TeresaM]

You are correct in that your gambling winnings will go on line 8b of Schedule 1. However, losses are not directly entered into Schedule 1, which is for income.
 

To report gambling losses, you must itemize your income tax deductions on Schedule A. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. In 2021 the standard deduction for filing single is $$12,550 and married filing jointly is $25,100. If you claim the standard deduction,

• You are still obligated to report and pay tax on all winnings you earn during the year.
• You will not be able to deduct any of your losses.

 You will be prompted to enter losses in the W2-G section. It will then show on Line 32 of the Schedule A Miscellaneous Itemized Deductions Worksheet.

[REvans2001]

Your reply is confusing. The topic at hand is deductions for gambling losses but then you injected a nonsequiter paragraph that turned your whole reply into nonsense.  The following  bold and Iitalicized part needs to be removed from your answer:

" ... ..  To report gambling losses, you must itemize your income tax deductions on Schedule A. You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. (The following is a _seperate_ _paragraph_ for  a different discussion): "In 2021 the standard deduction for filing single is $$12,550 and married filing jointly is $25,100. If you claim the standard deduction,

You are still obligated to report and pay tax on all winnings you earn during the year.

You will not be able to deduct any of your losses."

[VolvoGirl]

No it is right.  You have to itemize deductions on schedule A to deduct the losses.  But since the Standard Deduction is now a lot higher and more deductions are limited,  more people will take the Standard Deduction instead of itemizing which means you can't deduct the gambling losses.  

For 2021 the standard deduction amounts are:

Single 12,550 + 1,700 for 65 and over or blind (14,250)

HOH 18,800 + 1,700 for 65 and over or blind (20,500)

Joint 25,100 + 1,350 for each 65 and over or blind (26,450/27,800)

Married filing Separate 12,550 + 1,350 for 65 and over or blind (13,900)

[Str8upbrah]

I'm confused too. I don't want to know about a standard deduction. I was wondering if you can add the 1099 Misc in the same aa other gambling income. 

Bundle the W2g's and 1099 Misc together or if there will be a problem.

The reason is because while itemizing I can't seem to find how to itemize gambling losses on the 1099 Misc section.

It's treating it like a business and it's not a business. It's a gambling prize.

[REvans2001]

Bundle the casinos' 1099 misc into the same line with the W2Gs and then include the maximum losses from your win/loss statement.  Your maiming losses are automatically capped by your reported winnings. 

The reason is that You could not have those 1099misc wins at the casino if you weren't there also giving up those losses. 

[MarilynG]

Yes, your 1099-Misc for gambling winnings is reported as 'Other Income' on your tax return.

To report your gambling losses, you must itemize your income tax deductions on Schedule A.  You would typically itemize deductions if your gambling losses plus all other itemized expenses are greater than the standard deduction for your filing status. If you claim the standard deduction,

• You are still obligated to report and pay tax on all winnings you earn during the year.
• You will not be able to deduct any of your losses.

Click this link for more info on Gambling Losses.

@Str8upbrah

[Emilykinman]

I am unable to see the attached picture showing how this looks. I also have a gambling winning that was reported on a 1099 Misc instead of W2G so I wanted to see how this looks so I can bypass the 1099 misc form and can then put my losses towards this?

I just don't want to get in trouble with the IRS so want to make sure I do enter it properly. Thanks!

[Papa98665]

There does not appear to be any specific choice under Misc Expenses, so do you enter one that says gambling losses? Do you enter just the amount that matches your winnings or if the losses exceed the winnings, do you enter the total losses here?

[MonikaK1]

To report your gambling losses, you must itemize your income tax deductions on Schedule A. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses. The IRS doesn't permit you to ‌subtract your losses from your winnings and report the difference on your tax return. See this tax tips article for more information.

The entry field for gambling losses is actually in the Income section:

• Go to Federal Taxes tab ( Personal Tab in Self-Employed)
• Click Wages & Income
• Select I'll choose what I work on
• Then go to Less Common Income
• Click Gambling winnings
• Once you have entered your gambling winnings, click Done. After answering more questions, click Continue. Once you finish the questions for this area you will be provided an entry field to enter your gambling losses.

[williams4079]

OMG...multiple people are asking the same question but after reading all the advice the "experts' still have not answered the question!! The original question was asked back in 2020 and still no one at Turbo Tax has given us an answer we feel comfortable with. Turbo Tax surely has someone who can get the answer! If you enter the 1099-misc for $$ won in a drawing then there is no way to add it to the losses we claim at year end like the W2-G we normally receive for winnings. Is there any way the IRS will figure out what we are all trying to do without getting a red flag?? Obviously these 1099-misc we all got this year should have been W2-G instead and this is causing us all a problem.. what is the answer so we can all get  our taxes filed in time? 

[williams4079]

I think we are all confused and need an answer. I see the same question over and over but still no legitimate answer or an answer I feel comfortable with. 

[williams4079]

do you have an example of how to do this? It sounds like you have a logical answer. So should we just not enter the 1099-misc and instead use the gambling winning with no W2-G and put the amount there?

[LindaS5247]

If you were issued a 1099-Misc you should enter your gambling winnings as follows:

Gambling winnings are reported by following the steps below if you got a Form 1099-Misc.)

• Sign into your TurboTax Premier account (online or desktop)
  • Go to Federal Taxes tab ( Personal Tab if using Self-Employed version of TurboTax)
     
  • Click Wages & Income
     
  • Select I'll choose what I work on
     
  • Then go to Less Common Income
     
  • Click Gambling winnings
     

Are you itemizing your deductions or taking the standard deduction?

If you are taking the standard deduction, you can not take a deduction for your gambling losses.  Depending on what state you live in however, you may be able to take a deduction for your gambling losses on your state tax return.  

To report your gambling losses, you must itemize your income tax deductions on Schedule A. If you claim the Standard Deduction, then you can't reduce your tax by your gambling losses. The IRS doesn't permit you to ‌subtract your losses from your winnings and report the difference on your tax return.

You won't be able to deduct gambling losses if you lost more money than you won (excess losses) or if you're taking the Standard Deduction. For example, if you have $5,000 in winnings but $7,000 in losses, your deduction is limited to $5,000.

Keeping track of your winnings and losses

The IRS requires you to keep a log of your winnings and losses as a prerequisite to deducting losses from your winnings. Your winnings include each win during the year.

You typically cannot offset your winnings from one day with your losses from another day in order to report your net winnings or losses. Your winnings and losses typically need to be separated and reported individually. The IRS does allow you to net your wins and losses on the same day for the same type of wagering if you meet certain requirements. This means that if you win at the slots one day and lose the next day, you have to report the winnings on your tax return as income and then deduct the losses separately as an itemized deduction.

Typical sources of winnings and losses can include:

• lotteries
• raffles
• horse and dog races
• casino games
• poker games
• sports betting

Your records need to include:

• the date and type of gambling you engage in
• the name and address of the places where you gamble
• the people you gambled with
• the amount you win and lose

Other documentation to prove your losses can include:

• Form W-2G
• Form 5754
• wagering tickets
• canceled checks or credit records
• receipts from the gambling facility

Click here for additional information on gambling losses.

If this does not help please feel free to come back to TurboTax Community with additional details or questions or click here for information on Turbo Tax Support.  You can connect with a Live TurboTax Agent and share your screen.