Tax season is coming, and if you’re a gambler, you’ll want to know about the tax implications of your winnings. We’ve got all sorts of helpful tax Tax Tips for Gambling like you.
Super Bowl betting is expected to top $7.6 billion. Don’t forget the taxman if you win. (Don’t worry – a tax professional experts can help!)
Tips for Betting on the Super Bowl
Whether you’re betting on the Rams or the Bengals to win this year’s Super Bowl, don’t let the IRS beat you at tax time.
This newsletter will discuss how to handle your Super Bowl bets from a tax perspective, and we will also provide some tips for minimizing your tax liability.
So, whether you are a seasoned gambler or just making your first bet, read on for all the information you need!
For casual gamblers placing wagers through regulated sports betting in states that allow it, the IRS makes it a bit easier for you by placing reporting requirements on the payor (i.e., the casino), as well.
The payor is responsible for reporting the payout to the IRS, and you are still required to report your gambling income on your tax return.
Fantasy sports players who win more than $600 generally get a Form 1099-MISC, or 1099-K, depending on how the money is paid out.
Here are a few tips for you to consider:
- You Have to Report All Your Winnings
- You Might Get a Form W-2G
- Losses Are Deductible on Your Schedule A*
- Losses Are Deductible Up to Winnings*
- Report Winnings and Losses Separately*
- Keep Good Records
If You Are A *Professional Gambler:
- Deduct 100% of Your Losses as
- Business Expenses on Schedule C
- No Need to Itemize
- Audit Risks Maybe Higher
- State and Local Taxes May Apply
Are you interested in learning more about this? Let’s discuss more in a strategy session with a tax professional near me. Book Your Free Tax Assessment Here.