Assuming the income is from winnings you can report the winnings and losses as shown below. If the Form 1099-MISC has an amount in box 3 you can use the steps below without entering the Form 1099-MISC itself. Winnings shouldn't be reported on this document. To report your gambling winnings and losses you can use the steps below.Gambling winnings are reported by following the steps below.Sign into your TurboTax Premier account (online or desktop)Federal TaxWages & IncomeLess Common Income Gambling Winnings enter the full amount of the winnings Enter the gambling losses (see image attached for assistance)Gambling winnings are taxable income and any gambling losses to the extent of the amount of winnings is deductible as an itemized deduction under miscellaneous expense (not limited by a percentage of income) if this works for you . Attached is a checklist of other itemized deductions so that you take full advantage of this.If services were performed then income would be reported on Form 1099-MISC in box 7, as nonemployee compensation. This would be considered self employment income. You can add a comment if this applies to you.

Question

Ihavea 1099 Misc form from a casino how would I enter gambling losses? not on w2g its reported as other income

Forum|Forum|7 years ago
June 6, 2019
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D

DianeW777

Assuming the income is from winnings you can report the winnings and losses as shown below.

If the Form 1099-MISC has an amount in box 3 you can use the steps below without entering the Form 1099-MISC itself. Winnings shouldn't be reported on this document.

To report your gambling winnings and losses you can use the steps below.

Gambling winnings are reported by following the steps below.

Sign into your TurboTax Premier account (online or desktop)

Federal Tax
Wages & Income
Less Common Income
Gambling Winnings enter the full amount of the winnings
Enter the gambling losses (see image attached for assistance)

Gambling winnings are taxable income and any gambling losses to the extent of the amount of winnings is deductible as an itemized deduction under miscellaneous expense (not limited by a percentage of income) if this works for you .

Attached is a checklist of other itemized deductions so that you take full advantage of this.

If services were performed then income would be reported on Form 1099-MISC in box 7, as nonemployee compensation. This would be considered self employment income. You can add a comment if this applies to you.

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P

proofed49

Yes, thank you for your comment on this gray area that I am wrestling with. I have heard this stated both ways and am in urgent need of filing 2019 taxes witha note from the IRS saying they are going to send me a bill. I had about 11 grand in separate payments for winnings over 1200 which happened 4 times and were jackpots, in which I insisted the Indian gaming Casino take some out so I wouldn’t run into this situation. An additional 5000 was reported as Misc. and put me into about a $1000 tax bill. I am 72 and obviously was suckered pretty badly, my win loss statements add up to a near -70000 and I have beenwaiting for documents reporting these wins, The casino gave me a bunch of papers saying not for tax use that showed winnings of freeplay, cash , a blanket, totallling 5000 reported as 1099 misc. They were won with players cards which require one to have a card inserted and actively gambling…called hot seat drawings with wagers. I have been at wits end trying to find a way to report this correctly and legally. The tax person who itemized my return left mewith a 1000 dollar tax bill and a 500 dollar tax prep bill. She didn’t even think that my losses could be mitigated with the huge amount of loss and did it as easy for her as she could. I said this is a write off you are ignoring to make it easy on yourself and didnt even think to itemize. Well I have done it with past tax software ( not turbo) but the software doesn't see the gray areas. My last try using another companies lousy software was just wrong but itemizing can help me with these costs if it can be entered correctly and it is reporting a 100 refund, but the summary I got was reporting pensions as W-2 earnings and is questionable. This is driving me to the poor house…and I put a ban on my gambling voluntarily. Please make me believe that if I buy your software this can fly thru the IRS’s nitpicking rules and you will make me a believer in TurboTax. please respond they are threatening to bill me for this and I need help I can believe in. Thanks

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xmasbaby0

Employee

@proofed49 You are talking about"itemizing" to offset your losses. Do you have enough other itemized deductions like mortgage interest, property tax, etc. that would add up to enough to exceed your standard deduction? If you do not ---then itemizing does not help you. Gambling losses are an itemized deduction and they have no effect at all unless you have enough total itemized deductions to exceed your standard deduction.

Your standard deduction lowers your taxable income. It is not a refund.

2019 Standard Deduction Amounts

Single $12,200 (+ $1650 65 or older)

Married Filing Separate $12,200 (+ $1300 if 65 or older)

Married Filing Jointly $24,400 (+ $1300 for each spouse 65 or older)

Head of Household $18,350 (+ $1650 for 65 or older)

Look on line 9 of your 2019 Form 1040 to see your itemized/standard deduction amount

You will see your standard or itemized deduction amount on line 12 of your 2020 Form 1040.

2020 Standard Deduction Amounts

Single $12,400 (+ $1650 65 or older)

Married Filing Separate $12,400 (+ $1300 if 65 or older)

Married Filing Jointly $24,800 (+ $1300 for each spouse 65 or older)

Head of Household $18,650 (+ $1650 for 65 or older)

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

S

singardia

I am a new AARP tax aide and we just ran into this issue on our first day. A gambler was selected at random to win a $25,000 truck. The casino put that on a 1099-Misc, but some tax preparers say you can deduct losses against that $25,000 and some say you cannot. I would be curious to see if anyone can show evidence to support one of those stances. Pvaroz, what did you win that was put on a 1099-misc?

D

DianeC958

Even though the gambling winnings were reported on form 1099-Misc you can only deduct gambling losses as an itemized deduction.

If you do not have enough in mortgage interest, property taxes, state income taxes paid, charitable contributions, medical expenses that exceed 7.5% of your income to be greater than the standard deduction you will just take the standard deduction.

Link to Can You Claim Gambling Losses

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S

singardia

I understand about the standard deduction and being able to itemize, but it this case there was a prize of a $25,000 truck as a prize and over $25,000 in losses at table games. So with other items, they were well over the standard deduction. The question is if the truck that was won without placing a wager or buying a raffle ticket counts as gambling winnings since it was won in the casino. Is that considered a sweepstakes win and allowed to have losses written off against it? In order to win the truck, you had to have a players card.

M

MAK70

Yes, the truck would be winnings and you can use the losses from the table games an an itemized deduction to reduce the tax owed.

@singardia

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dougcox201

I have the same situation, but if I don’t add the 1099misc I can’t enter the social security and Medicare they took out. If I do add the 1099misc, then the amount is in gross income.

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REvans2001

I have same issue with winning a drawing for $1,250 1099misc. Plenty of W2G's and losses to use deductions but I don't know where to put the 1099misc casino prize so that I can increase my loss deductions to reduce the tax on the 1099misc.

Does anyone know specific IRS ruling re 1099 prizes and deductions?

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FangxiaL

Regardless of which form the winnings are reported, you can only deduct up to the winnings and you have to itemize to take the deduction.

Here is a link to Topic No. 419 Gambling Income and Losses.

@REvans2001

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REvans2001

To simplify my question: Can I just add the 1099misc (from a casino lottery drawing) into line 8c Schdl 1 for gambling income?

If I must show the1099misc on line 8z Schdl 1 then the casino loss deductions get limited by the smaller total W2G's on line 8c.

My W2G winnings justify itemizing this year. Your comment that one cannot deduct more losses than winnings is rudimentary common sense. That aspect is the first thing IRS (or anyone) talks about.

S

Str8upbrah

I'm confused too. I don't want to know about a standard deduction. I was wondering if you can add the 1099 Misc in the same aa other gambling income.

Bundle the W2g's and 1099 Misc together or if there will be a problem.

The reason is because while itemizing I can't seem to find how to itemize gambling losses on the 1099 Misc section.

It's treating it like a business and it's not a business. It's a gambling prize.

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REvans2001

Bundle the casinos' 1099 misc into the same line with the W2Gs and then include the maximum losses from your win/loss statement. Your maiming losses are automatically capped by your reported winnings.

The reason is that You could not have those 1099misc wins at the casino if you weren't there also giving up those losses.

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williams4079

do you have an example of how to do this? It sounds like you have a logical answer. So should we just not enter the 1099-misc and instead use the gambling winning with no W2-G and put the amount there?