You should be able to use TurboTax deluxe to enter your gambling losses but only to the extent of your gambling winnings for the year and only if you itemize your deductions. (If you are required to upgrade, the system will prompt you to do so.)
You use Schedule A to report your deductible gambling losses. However you will only get the benefit of being able to deduct these gambling losses if all your itemized deductions combined are greater than your standard deduction. So if your standard deduction is greater than your itemized deductions, TurboTax will take the greater standard deduction.
According to the IRS:
- Gambling winnings are fully taxable and you must report them on your tax return.
- You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return
Please refer to this IRS link for more information about reporting gambling winnings and losses
To enter your gambling winnings and losses in TurboTax Online(for TurboTax Online sign-in, click Here ) or Desktop, please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages and Income” ("Personal Income" in TurboTax Home & Business)
- Next click on "jump to full list" or “see more income” (see more income)
- Scroll down the screen until to come to the section “Less Common Income”
- Choose "show more", then Gambling Winnings and follow the onscreen instructions
- You also report your gambling losses here. (They are only deductible to the extent of your winnings and only if you itemize your deductions.)
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