Gambling winnings are reported as Other Income on Line 21 of IRS Form 1040. While you may be able to deduct your gambling losses, gambling winnings are not directly offset by gambling losses in your tax return. You must be able to itemize deductions on Schedule A of your return in order to deduct the gambling losses, and then can only deduct an amount up to the amount of your gambling winnings. You may or may not have received a Form W-2G for your gambling winnings.
To report your gambling winnings in the TaxAct® program:
- From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
- Click Other Income to expand the category, then click Gambling winnings
- The program will proceed with the interview questions for you to enter the appropriate information
If you need to enter information from more than one Form W-2G, click Add
on the summary screen to create a new copy of the form, or click Review
to review a form already created.
To enter gambling losses in the TaxAct program:
- Click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
- Click Itemized or Standard Deductions to expand the category, then click Gambling expenses - Not subject to 2% of AGI limit
- Enter the amount of losses qualified to be deducted
The gambling losses screen has information regarding the amount you can deduct, as well as the documentation needed for the deduction.