Trip (prize) vs Gambling winnings

[AZ-Tax]

Client won a trip to Disneyland thru a radio contest. The contest people (what ever they are called) put a value on the trip of $1256 in the form of a 1099-misc (box 3). Client has $1416 of lottery tickets and casino losses for which I would require my Client sign a letter to that effect.

Am I safe to enter $1256 as "Gambling winnings" on line 21 form 1040 and enter the $1416 as Gambling losses in Sch A form 1040?

[Jiggers]

Prize versus Gambling

Mixing apples and oranges.

You can't deduct gambling winnings against a prize.

Even if you could, the gambling expense is limited to the gambling income and subject to 2% AGI.

[AZ-Tax]

Correction: Trip (prize) vs. Gambling losses

Sorry, about that. Prior heading was different then content.

[Larmil]

Client won a trip to Disneyland thru a radio contest. The contest people (what ever they are called) put a value on the trip of $1256 in the form of a 1099-misc (box 3). Client has $1416 of lottery tickets and casino losses for which I would require my Client sign a letter to that effect.

Am I safe to enter $1256 as "Gambling winnings" on line 21 form 1040 and enter the $1416 as Gambling losses in Sch A form 1040?

No. The prize is not considered gambling winnings. Prize on line 21 and nothing on sched A unless there is gambling winnings.

[Y2KEA]

Mixing apples and oranges.

You can't deduct gambling winnings against a prize.

Even if you could, the gambling expense is limited to the gambling income and subject to 2% AGI.

Gambling losses go on schedule A line 28 NOT subject to 2%AGI.

[Jiggers]

You are correct

Gambling losses go on schedule A line 28 NOT subject to 2%AGI.

Head in a fog this time of year. You are correct. But they are limited to winnings.