Where do I file gambling losses under without a W2G?

[DoninGA]

You just continue past the Form W-2G entry screen and enter your winnings and losses on the following screens.

Gambling losses can only be deducted up to the amount of the gambling winnings.
Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. The amount from Part I of Schedule 1 Line 10 flows to Form 1040 Line 8.
Gambling Losses are reported on Form 1040 Schedule A as a Other Itemized Deductions. Gambling losses are not a one-for-one reduction in winnings. Your total itemized deductions reported on Form 1040 Schedule A must be greater than the standard deduction for your filing status to have any tax benefit.

To enter, edit or delete Gambling Winnings and Losses -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Prizes, Awards, and Gambling Winnings, click the start or update button

[TomK2023]

Gambling losses are indeed tax deductible, but only to the extent of your winnings and requires you to report all the money you win as taxable income on your return. The deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling 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.

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

Enter Form W-2G (Certain Gambling Winnings) in TurboTax:

1. Open your return.
2. Enter w2g (don't include any hyphens) in the Search box.
3. Click on Jump to w2g link in the search results.  (Even if you didn't receive a W-2G.)
4. Answer Yes on the Did you win money or other prizes in 2023? screen and follow the instructions to enter your W-2G.  or
5. Enter that you Didn't receive a W-2G on the next screen and proceed through the interview.

After you've finished entering all of your gambling winnings, we'll ask about any losses you may have had. Losses can be deducted up to the amount you reported winning, but only if you itemize.

This entry(ies) will show up on Line 8b of Schedule 1, and then carry forward to Line 8 of 1040 or 1040SR.

[timmymcnugget]

A follow up question. I was on vacation in Oregon and won a few thousand on the DraftKings Sportsbook app. Their state reporting is way different than other states, as I’ve never gotten sent this with Sportsbook winnings in the past (I have gotten similar forms for daily fantasy winnings, as those are classified differently). 

A few weeks after I got home, I received in the mail 6 W2Gs with each individual bet. The dumb part is it’s including the wagered amount in the “won” amount, so it’s inflating the total number. I’ve since been able to get a single w2g form through DraftKings that aggregates it all in Oregon. When I enter that form it drops my refund down over $4k. Then when it asks me about my losses, I enter in the entire amount it lets me (as I lost well this amount in my home state) and it only gives me $1300 back. 

I am now considering getting someone to do my taxes, as the TurboTax software isn’t able to remedy this. It seems like my total gambling federal tax liability should be $0, since I lost overall. Any suggestions?

[xmasbaby0]

It seems that you are expecting your winnings to be offset by your losses---and it does not work that way.  Winnings are taxable income, but losses are only an itemized deduction.   If you do not have enough itemized deductions to exceed your standard deduction, the losses have no effect.

Gambling

To enter the W-2G  or other documents For your Gambling winnings--Go to Federal>Wages & Income>Less Common Income>Gambling Winnings

You can enter your winnings, and then keep clicking through the interview to enter gambling losses.

https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses

Gambling winnings are taxable income.  Losses are an itemized deduction.  If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect.

https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/

https://ttlc.intuit.com/questions/1900352-can-i-deduct-my-gambling-losses

2023 STANDARD DEDUCTION AMOUNTS

SINGLE $13,850  (65 or older/legally blind + $1850)

MARRIED FILING SEPARATELY $13,850  (65 or older/legally blind + $1500)

MARRIED FILING JOINTLY $27,700  (65+/legally blind) )  + $1500 per spouse

HEAD OF HOUSEHOLD  $20,800 (65 or older/blind)  + $1850)

[timmymcnugget]

Thank you for the response. The gambling losses put me over the standard deduction of $27,700 and put me into itemized at a total of $33k. Should that change anything?

[xmasbaby0]

Maybe----but remember that there are caps and thresholds on itemized deductions.  There is a $10K cap on SALT---state and local taxes---and the medical deduction has to meet a very difficult threshold or it has no effect.

Enter all of your itemized deductions including the losses and the software will do the calculations.  Your itemized or standard deduction will be on line 12 of your Form 1040.