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11463: 1040 - Gambling Winnings and Losses


1040 Individual Generally

Where do I enter gambling winnings and losses?

Winnings:

If reported on a W2G, enter gambling winnings on screen W2G.  Otherwise, enter the total amount in the Gambling winnings field of line 21 on screen 3 - Income.

  • In Drake18, the amount of gambling winnings flows to line 21 of Schedule 1 and then the sum of lines 10-21 flows to Form 1040, line 6
  • In Drake17 and prior, the amount of gambling winnings flows to line 21 of Form 1040 as other income. 

Losses:

Losses are entered on Schedule A. If taking the standard deduction, no deduction is allowed for gambling losses. Gambling (or gaming) losses may be taken only to the extent of gambling winnings (note 288 will generate). On screen A - Itemized Deductions Schedule, enter the losses as Other not subject to 2% limit (line 16 starting in Drake18; line 28 in Drake17 and prior). Use the drop list to select Gambling Losses.

  • In Drake18, the amount of losses allowed will flow to Schedule A, line 16. The program will automatically limit this amount to the gambling winnings amount. 
  • In Drake17 and prior, the amount of losses allowed will flow to Schedule A, line 28. The program will automatically limit this amount to the gambling winnings amount. 

If only gambling losses are entered into the return, EF message 0197 will generate as the amount of gambling losses that carries to the return would be zero. If there are no gambling winnings to be reported, there is not deduction allowed for gambling losses. To clear this red message, either: 

  • Go to screen 3 or the W2G screen and enter the gambling winnings, or
  • Remove the gambling losses from the Schedule A screen. 

There is not a limit on the number of W2Gs that may be electronically filed.

Indiana Hoosier Lottery Winnings on W2G Screen

On the W2G screen, in the first line of the field Payer’s name..., use the name “HOOSIER” to identify the W2G winnings as Hoosier Lottery. The entry is not case sensitive.
Text that includes the word “Hoosier” also will identify the Hoosier Lottery. Do not include the word “Hoosier” in the line if you do not intend to identify the Hoosier Lottery. 


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