1099-MISC for Gambling winnings

Forum|Forum|4 years ago
February 27, 2022
2 replies
33 views

A client of mine received a 1099-MISC for gambling winnings. He had losses that were able to offset the winnings. He was able to itemize his deductions to offset the winnings with the losses. The return was rejected with the following explanation: "If Schedule A (Form 1040), 'Other Miscellaneous Deduction Amt' has a non-zero value, then Schedule 1 (Form 1040), 'Gambling Reportable Winning Amt' must be greater than or equal to 'Miscellaneous Deduction Amt' in [Other Misc. Deductions Stmt.] with corresponding 'Miscellaneous Deduction Type Desc.' having the value "Gambling Losses". I reported the 1099-Misc amount in Box 3 and checked the box "Winning (Prizes, etc.). Schedule 1 shows the income as "Prizes and Awards". Shouldn't the client be able to deduct the cost of entering the tournament where the prize was earned?

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Just-Lisa-Now-

Intuit Community Champion

1099MISC is usually given for prizes and awards, not wagering money gambling.

You sure this is gambling winnings?

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G

geraldgintercpaAuthor

Level 3

It was a prize. The client travelled and paid an entry fee to enter the tournament. Shouldn't the client be able to deduct the entry fee and expenses related to that prize?

IRonMaN

Level 15

But you are changing the story as you go. Gambling losses are ok to deduct, sounds like you want to deduct miscellaneous itemized deductions to offset the income which disappeared from the federal return a few years ago.

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