Originally Posted by james40 View Post
It would be true up to a point, if not a professional and not using Sch C, line 21 on the 1040 form would only show the amount claimed. You would not see the deductions used to arrive at the amount. For example: I win $10,000, but I have $9,500 in ATM receipts, my 1040 line 21 would read $500. So if filing as a professional, the schedule C information would be included in the transcripts, if not as a professional, the transcripts don't do you much good without seeing the gross winnings before deductions.
This is not correct. On 1040 Line 21 you enter your gross wins. Losses go on Schedule A Line 28. You subtract your Schedule A total later on the 1040 form on Line 40.