Note: Be careful that you don't confuse this form, W-2G, with a W-2, the form on which your employer reports your income (wages) and withholdings.
Form W-2G, Certain Gambling Winnings
What is Form W-2G?
Gambling winnings are usually reported on Form W2-G, however, sometimes they are reported on Form 1099-MISC. If you received a 1099-MISC rather than a W2-G, refer to 1099-MISC Income.
Gambling losses can be deducted as an itemized deduction up to the total of reported gambling and prize winnings.
For example, if you won $50 and lost $200, you can only deduct $50 in gambling losses. On the other hand, if you lost $200 but did not win any money, you cannot deduct gambling losses.
Also, you can only deduct losses if you itemize your deductions.
How do I enter a W-2G in TurboTax?
The easiest way to get to the W-2G screen is to search for "gambling losses" in your TurboTax program. (Use this exact search term even if you didn't lose any money gambling.)
Then, click the gambling losses link in the search results. You'll come to a screen, Tell Us About Your Winnings, where you can start working on your W-2G forms.
For more about how gambling income and losses can affect your tax return, watch this video from the IRS: