How to Enter Your Gambling Winnings and Losses into TurboTax

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.

Gambling winnings are usually reported on Form W2-G, however, sometimes they are reported on Form 1099-MISC.

Here's how to get to the W2-G screens in the TurboTax Online:

1. Select the Tools button in the upper right-hand portion of the screen. 
2. Select Topic Search. 
3. When the window opens, type "w2-g" into the box, select the item that best describes the W2-G that you received, and then select GO. 
4. Follow the on-screen instructions to enter the information from your W2-G.

Here's how to get to the W2-G screens in the TurboTax desktop or CD/download version:

1. Enter your cursor into the search box in the upper right-hand portion of the screen. 
2. Type "w2-g" into the box, click on the item that best describes the W2-G that you received. 
3. Follow the on-screen instructions to enter the information from your W2-G.

If you received a 1099-MISC rather than a W2-G, enter "1099-misc" as the search word in the above instructions.

NOTE: Do NOT enter the information in the W-2 section of the program.

Important: Remember, you must enter gambling winnings to be able to deduct gambling losses.