Both the Windows and Mac versions of TurboTax Desktop will properly categorize prize winnings as non-gambling income, if the questions in the Prizes and Awards section are answered as follows:
In Prizes and Awards, under Less Common Income:
- Did (name) win money or other prize? Answer Yes
- Whose W-2G do you want to work on? Select We didn't receive a W-2G.
- Did (name) receive any other gambling or lottery winnings not reported on a W-2G? Select No if that's the case.
- Did (name) win any other pries or awards that didn't come from gambling? Select Yes
- Enter the amount of prize and award winnings next to the person's name
The prize and award winnings will then appear on Schedule 1, line 8i, Prizes and Awards, and not on 8b as Gambling income.
However, I got the same issue with filing status that you did when I entered the Prize income as received by the wife - it said this item was invalid because the filing status wasn't Joint. Thank you for bringing this to our attention.
I am reporting the issue with the filing status for investigation.
In order for us to troubleshoot this issue with your product, you can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Desktop users:
- From the black bar at the top of your screen, select Online
- Click Send Tax File to Agent
- Click Send on the message that pops up
- TurboTax will create a "sanitized" copy of your return information with no personal info
- Post the full token number here in this thread
We will then be able to review your file to see what you are seeing, and we can determine what is going on in your return and provide you with a suggested resolution.
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