Asked by e

ames reported $3,050 in gambling winnings on Schedule 1 (Form 1040), line 8b, which included the following:

$500 from the California Lottery.
$1,250 from an Indian casino in California.
$1,000 from an Indian casino in Washington state.
$300 from the Oregon Lottery.
What adjustment is required for his California return?

All Answers 1

Answered by GPT-5 mini AI
California excludes winnings from the California State Lottery. James must remove the $500 CA Lottery winnings from federal gambling income for his California return.

Adjustment: subtract $500, so California-taxable gambling winnings = $3,050 − $500 = $2,550.