It therefore follows that something like gains from casino drawings, where the tickets are earned from slot machine play, could easily fit into the definition of gains from wagering, thus losses could be applied to both the amounts reported on W-2G and Form 1099-Misc. Furthermore, it does not define anywhere in the IRC what it means by 'Gains from or Losses from wagering activities.' Both the terms 'Gains' and 'Wagering' activities are much broader in their meanings. It is very important, to stress what I have previously mentioned, that the IRC speaks of 'Gains from wagering activities,' and 'Losses from wagering activities.' It does not say winnings from gambling or losses from gambling.

The thing to remember is that, regardless of the form used, 'gains from wagering activities' is the essence of what the IRC (Internal Revenue Code) speaks to, and gains can be reported on Forms W-2G as well as a 1099-Misc. You reported all income, so there should not be a problem. If the IRS should ever question this, you can simply explain to them what you did and why. (The problem here is that Turbotax did not give the option of describing the 1099-Misc as having been derived from Gambling activities.) I did this, all worked well, and my return was accepted by the IRS. on Schedule 1 has been expanded, is to simply 'override' the entry where an amount from a 1099-Misc has been entered on one of the line 8 subsections, blank that entry out and add it to line 8.b. To deal with the situation in tax year 2021 where the line 8.

One of the choices was 'Gambling' and it was recorded on a single line 8 along with your W-2G winnings (so you could offset all gambling losses against line 8). In prior years if you had received a 1099-Misc, Turbotax would ask what the nature of the 1099-Misc was.

The Schedule 1, line has been expanded into several lines, namely lines 8.a.

Casino drawing 1099 tax rules