Gamb loss offset prz on1099MISCbx3? Received free tix upon entry into casino-casino called ticket# & won $3K prz-they said sweepstakes with no wager so not W2G

[NW-MN-CPA]

Can I report a deduct gambling losses on Schedule A to offset 1040 "other income" (prize reported by casino on1099MISCbx3)? Taxpayer was given ticket representing chance to win if present when they called his ticket number-later that day casino called his ticket number & he won $3,000 prize-casino treated as a sweepstakes with no wager so reported on 1099MISCbox3 (not W2G).  If I can substantiate that taxpayer had $3,000 gambling losses, can I report the $3,000 gambling losses on Schedule A?  The way ProSeries includes 1099MISCbox3 in "gambling income" (part of "other income"), it looks like ProSeries says the $3,000 income is gambling so I can take the $3,000 gambling losses on Schedule.  Initially I thought there would have to be consideration given by Taxpayer (ie, a wager) in order for it to be considered gambling; but apparently, just coming into the casino is enough "consideration" provided by taxpayer to make the $3,000 winning in this example "gambling income".

[IRonMaN · Accepted solution]

I would be willing to bet that you can consider that gambling income so you do have the potential to offset against gambling losses.  Whether or not you have enough other itemized to do any good is another story, although you have a lower bar to clear on the Minnesota side of things.