Why do I need to enter how much of my gambling income/losses came from the California state lottery?

California state lottery income/losses are treated differently than other gambling income/losses for income adjustments and itemized deductions purposes. They need to be entered so that the differences in California and non-California gambling income/losses can be correctly calculated on your return.

California lottery income is not taxable income for California tax purposes. Your taxable income will be reduced by the amount of California lottery income.

California lottery losses are not deductible for California tax purposes as an itemized deduction. Your potential itemized deductions will be reduced by the amount of California lottery losses.

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