Question

COLORADO IS NOT SUBRACTING LOSS FROM GAMBLING

Forum|Forum|3 years ago
March 9, 2023
1 reply
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THE COLORADO TAX IS NOT REDUCING INCOME WITH GAMBLING LOSS TRANSFERED FROM FEDERAL TAX RETURN

Gambling losses are an itemized deduction for federal and state returns up to the gambling winnings. Colorado starts with federal taxable income which is after itemized deductions; so it already accounts for the gambling losses entered on line 16, Schedule A on an itemized return.

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W

wyo84

Is there still a way to record gambling losses for state taxes since Colorado is limiting itemized deductions?

J

JohnW152

Yes, there is -- if you've entered gambling losses on your federal return, those will be reflected on your Colorado return.

Line 1 of your Colorado return starts out using the taxable income from your federal Form 1040-series form. That means that any allowable gambling losses you included on your federal return are already accounted for on your state return.

To enter your gambling losses in TurboTax Online:

Open TurboTax Online
Select Tax Home in the left pane
On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the Deductions & Credits box, then select Start, Continue, or Pick up where you left off
Scroll down and select the Show more dropdown to the right of Less Common Income
Select Start or Revisit to the right of Gambling Winnings
You'll first be asked to enter winnings from any Forms W-2G you might have received. Enter all W-2G information. When you're done with those, select Done on the W-2G info page
You'll then be asked to enter any non-W-2G winnings. Enter the total amount, if any, then select Continue
Now you'll come to a screen called Let us know if you had any gambling losses in 2022. Enter your gambling losses into the field on the screen and select Done

Note that you can't claim gambling losses unless you itemize deductions, and the TurboTax program won't allow you to enter losses larger than your total winnings.

@wyo84