Why do I need to enter which gambling income/losses came from the California state lottery?
California state lottery income/losses are treated differently than other gambling income/losses for income adjustment and itemized deductions purposes. They need to be entered so that the differences in state and non-state gambling income/losses can be correctly calculated on your return.
State lottery income is not taxable income for California tax purposes. Your taxable income will be reduced by the amount of state lottery income.
State lottery losses are not deductible for California tax purposes as an itemized deduction. Your potential itemized deductions will be reduced by the amount of state lottery losses.