Gambling losses are deductible (up to the extent of winnings) as an itemized deduction. When the winnings are reported on a W-2G no problem, but what about gambling winnings that are reported on a 1099 by the Casino. Can I offset these winnings also with losses and how would I report the 1099 in ProConnect where it would allow me to increase the losses to include the 1099 amounts?
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The winnings on a 1099 aren't technically gambling winnings - they're prizes. No offset available, even if the client put them straight into a slot machine.
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