How do I report different gambling winnings for federal and NJ purposes?

Forum|Forum|1 year ago
February 15, 2025
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I have some winnings from sportsbooks, casinos and NJ lotto that will be reported as ~$1800 for federal purposes. (I will not be receiving a 1099 or W-2G for these winnings - i.e., all self-reporting.) All of these are NJ-sourced income, which is my state of residency.

I have gotten to $1800 by adding my winning lotto tickets to my winning sportsbook bets to my winning casino sessions (using the "sessions" method). I will be taking a standard deduction. Accordingly, I will NOT be subtracting losing lotto tickets, losing sportsbook bets or losing casinos sessions from my federally reported winnings (since not permitted for federal purposes) nor will I be taking a deduction any for losing lotto tickets, losing sports bets or losing casino sessions (since I am taking the standard deduction).

However, NJ calculates taxable gambling income differently. (https://www.nj.gov/treasury/taxation/lotterygamblingwinnings.shtml). NJ let's you "net" all lotto and gambling winnings/losses and has an exclusion for NJ lotto winnings up to $10K. I calculate my NJ taxable gambling winnings as ~$1200.

Given that I have $1800 in federal gambling winnings but only $1200 in state gambling winnings, and the way to get there is more complicated than simply wins minus losses, how can I input this on TurboTax?

Best answer by AmyC

Follow these steps to enter the gambling winnings in the federal section:

go to wages and income
scroll down to less common income
locate gambling winning and start/ edit
Select NO w2G, continue
Select Yes and enter federal taxable amount
select correct option for other prizes, continue
enter the gambling loss- it will not go on your federal since you take the standard but will carry over to your state

The state nets the amount correctly and no further entries are needed.

AmyCAnswer

Employee

Follow these steps to enter the gambling winnings in the federal section:

go to wages and income
scroll down to less common income
locate gambling winning and start/ edit
Select NO w2G, continue
Select Yes and enter federal taxable amount
select correct option for other prizes, continue
enter the gambling loss- it will not go on your federal since you take the standard but will carry over to your state

The state nets the amount correctly and no further entries are needed.

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