How do I get my TurboTax online to file with IRS for Reject Code SA-F1040-025-01

[ryanjcrawford]

I have a 1099-MISC for gambling winnings and have offset records for gambling loss, but it keeps rejecting

[DaveF1006]

After reviewing my original answer, this isn't the correct path to take because the gambling losses are considered itemized expenses that must be reported in a different manner as pointed out by sweetiejean. There is a different manner in reporting this.

1. Go to federal>income and expenses
2. less common expenses>gambling winnings
3. As you go through this section, it will ask if you received a W2G, say no
4. it will ask if you have winnings not on a W2G, say yes
5. Enter any winnings that weren't reported on a W-2G put the full amount of the winnings
6. Next screen asks Let us know if you had any gambling losses in 2021 here you will put the amount of your losses up to the amount of your winnings
7. Since the gambling losses are itemized deductions, if you are able to itemize this year, they will appear on Schedule A as itemized deductions. If you claim a standard deduction however, then these losses might not be claimed.

[ Edited 02/10/22|06:00PM PST]

@ryanjcrawford

[ryanjcrawford]

You Sir are AWESOME!!! I spent 3 hours on 3 separate calls with TurboTax product specialists, and other time scouring over forums to not get a solution.  You solved it! THANK YOU!!!

[SweetieJean]

@DaveF1006 How does your suggestion comport with the following from the IRS:

You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as "Other Itemized Deductions."

Topic No. 419 Gambling Income and Losses | Internal Revenue Service (irs.gov)

[Aquariusknight]

@DaveF1006  I'm facing a similar problem as Ryan.  In your recommendation, are you saying not to enter a 1099-MISC and instead enter the winning amount under the Gambling Winning Section as you described below?

To be clear, here's my situation (with simple numbers for explanation).  I have $1000 of reported winnings via a 1099-MISC and I have $1000 of reported winnings via a W-2G.  By adding the 1099-MISC and W-2G, TurboTax prompted me to deduct up to $2000 in Gambling Losses.  I did that and then received the same rejection code and message:

Here's the reason your IRS return was rejected: SA-F1040-025-01 - If Schedule A (Form 1040), 'OtherMiscellaneousDedAmt' has a non-zero value, then Schedule 1 (Form 1040), 'GamblingReportableWinningAmt' must be greater than or equal to 'MiscellaneousDeductionAmt' in [OtherMiscDeductionsStmt] with corresponding 'MiscellaneousDeductionTypeDesc' having the value "GAMBLING LOSSES".

Thank you in advance for your help!

[DaveF1006]

Really not sure what happened unless you entered gambling losses in excess of your winnings. Try entering this in the following manner and see if this works.

1. Go to federal>wages and income>less common income>gambling winnings
2. Here enter the W2G information first.
3. Then it will ask if you have gambling winnings not a W2G, say yes and then add the information.
4. The very last thing that will be asked is if you have gambling losses to report, you will say yes and put in the full amount of the losses up to the amount of your winnings. 
5. let us know if this works.

@Aquariusknight

[Aquariusknight]

@DaveF1006  Thank you for the step by step instructions. That’s actually my question. If I follow your steps, should I delete the 1099-misc that I entered? I just want to make sure the IRS is OK with me reporting the full amount, but instead of it being listed under Prize in my Schedule 1, it’ll be part of my total Gambling Winnings section.

[AliciaP1]

Yes, you should delete the 1099-MISC and as long as you report your full income to be offset by your losses, you will be good to go!

@Aquariusknight