Entering Gambling Losses in TurboTax

Forum|Forum|2 years ago
February 17, 2024
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I won a cash drawing from a local casino. I have a nearly equal amount of losses from that same casino. The casino sent me a 1099-MISC for the drawing winnings, which I entered into TurboTax under the 1099-MISC category. How do I enter my gambling losses into TurboTax to offset those winnings?

I tried walking through the gambling winnings section of the income, but it didn't take me to anywhere that I could enter losses.

Best answer by Vanessa A

The reason you are not getting the option to enter your gambling winnings is because you have to enter your winnings in the gambling section. Your winnings should be reported to you on a W2-G instead of a 1099. To enter your gambling winnings and claim the losses that go with the winnings, you can select the following:

Income
Less common Income
Prizes, Awards, and Gambling Winnings
Say No, you did not receive a W2-G, hit next
Enter your winnings
On the next screen enter your losses.

Since you have the 1099-Misc You will need to make an additional entry to remove the income but still have the 1099-Misc included on your return.

To remove the income so it is not double reported, you will go to

Income
Miscellaneous Income
Other Income not already reported on Form w-2 or Form 1099
Select yes to Other Wages Received
Hit continue 3 times without entering anything
Say Yes to did you earn any other wages
Select Other then Continue
Enter gambling income reported on 1099-Misc instead of w2 g
then enter the amount of the 1099-Misc as a negative number.

I have also edited the original answer.

Vanessa A

Your winnings should be reported to you on a W2-G instead of a 1099. To enter your gambling winnings and claim the losses that go with the winnings, you can select the following:

Income
Less common Income
Prizes, Awards, and Gambling Winnings
Say No, you did not receive a W2-G, hit next
Enter your winnings
On the next screen enter your losses.

Since you have the 1099-Misc You will need to make an additional entry to remove the income but still have the 1099-Misc included on your return.

To remove the income so it is not double reported, you will go to

Income
Miscellaneous Income
Other Income not already reported on Form w-2 or Form 1099
Select yes to Other Wages Received
Hit continue 3 times without entering anything
Say Yes to did you earn any other wages
Select Other then Continue
Enter gambling income reported on 1099-Misc instead of w2 g
then enter the amount of the 1099-Misc as a negative number.

In order to claim gambling losses, you must itemize your return. So even if you left it ride in your account and then lost it all betting it again, you would need to include the winnings as income and then itemize your return to claim any of the losses.

Other Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.

The 2023 Standard Deductions are as follows:

Married Filing Joint (MFJ) $27,700
Married Filing Separate (MFS) $13,850
Head of Household (HOH) $20,800
Single $13,850

Blind and MFJ or MFS add $1,500

Single or HOH if blind add $1,850

Did you receive a W2-G?

To enter your w2-G select the following:

Federal
Income
Prizes, Awards, and Gambling Winnings under Less Common Income

(edited 2/17/24 @ 12:50PM PST) @bschnebly

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bschneblyAuthor

This doesn't come close to answering the question.

I stated that I entered the winnings under the 1099 section of earnings because the casino sent me a 1099-MISC with the winning amount in the OTHER box. There was no W2-G.

I know that I have to itemize deductions to claim gambling losses, and am already itemizing because of other deductions. What I want to know is where in the TurboTax deduction section do I enter the gambling losses? I walked through every category, and none of them asked me about gambling losses.