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?