Filing with gambling winnings and gambling losses.
If I have gambling winnings w-2 to claim on my taxes and I also have gambling losses to claim, how do I file on FreeTaxUSA?
Best Answer
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Hi Savage1!
Gambling winnings and losses are located in separate areas of the software.
First, if you have gambling winnings on From W-2G, that is entered in our 2024 software by going to Income > Uncommon Income > Gambling Income (W-2G). Otherwise, if the winnings are not on a W-2G, you can enter the winnings by going to Income > Uncommon Income > Other Income. You will then need to mark Yes on "Gambling Income" where the software will ask for that information.
For losses, you will enter this by going to Deductions/Credits > Other Itemized Deductions. There is a box here that you can enter the amount of your gambling losses. Please note that this box will only be accessible if you have previously entered gambling income under the Income tab, as you can only deduct gambling losses up to your gambling income amount.
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Answers
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why don’t I see my loss on my State return (in my state I can deduct up to my winnings)
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It depends on the state, but in most cases not seeing gambling losses being deducted is likely because your state itemized deductions are less than your state standard deduction. I was able to pull open your account, and this appears to be the case in regard to your state (we don't discuss specifics in the community to protect your privacy).
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I’m in California my taxes keep getting rejected don’t have ca state id. Does not give it on my w2 g for lottery. It has the tin number but still rejects it
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Hi Karlaj11111111,
I suggest you contact the state lottery and also check the TIN you entered. You could also check with Customer Support to have someone look over your entry.
If your return continues to get rejected, you will need to print and mail your returns.0 -
So my confusion is beings there was nothing taken out amount was $1214. I only pay federal taxes on it as state of California does not. Why can’t I claim under other or enter it I called irs and they don’t even see it I understand they are mailing me hard copy of W 2 g. Is it flagged if I use other and enter gambling
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Hello Karlaj11111111:
Yes, if you report your gambling winnings as “other income,” your federal tax return may be identified as containing an error because gambling winnings are reported on a specific line on Schedule 1, Form 1040, namely line 8b.
While reporting your gambling winnings as other income may indeed clear the error you are seeing, we cannot recommend it as an appropriate work-around because we want to ensure our customers report their income on the correct line(s) on their tax returns. Moreover, in your situation you did receive a W-2G, and that form was sent to the IRS—and maybe CA too—and thus, the IRS would expect to see your gambling income reported on line 8b of Schedule 1.0
