TaxGuyBill
Level 15

You can "back it out" as a negative number on the "other income" line (use the amount of the winnings as a negative number, don't create a loss on the tax return).

As you pointed out, if there was no "session" gain, there there is $0 of taxable gambling income to report.  But the IRS wants to see that W-2G, so you need to enter that same amount as a negative number (I would call it something like "per-session gambling W-2G offset").

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