From the first link I posted: “[Y]ou can’t subtract the cost of gambling from your winnings. For example, if you win $620 from a horse race but it cost you $20 to bet, your taxable winnings are $620, not $600 (after subtracting your $20 wager).” If you think Turbotax is wrong, I strongly encourage you to offer more than your word as a random person on the internet.
It’s nuanced. Apparently you do need to be itemizing deductions:
https://www.irs.gov/taxtopics/tc419
On the plus side, if you keep each individual payout below $600, you can avoid it entirely.
I see that the rules were likely changed with the Trump tax changes in 2016, I apologize for spreading outdated information.
From the first link I posted: “[Y]ou can’t subtract the cost of gambling from your winnings. For example, if you win $620 from a horse race but it cost you $20 to bet, your taxable winnings are $620, not $600 (after subtracting your $20 wager).” If you think Turbotax is wrong, I strongly encourage you to offer more than your word as a random person on the internet.
It’s nuanced. Apparently you do need to be itemizing deductions: https://www.irs.gov/taxtopics/tc419 On the plus side, if you keep each individual payout below $600, you can avoid it entirely. I see that the rules were likely changed with the Trump tax changes in 2016, I apologize for spreading outdated information.