Sports betting tax winnings
According to the Internal Revenue Service, it is your responsibility to keep track of sports betting wins and losses and to enter the appropriate amounts on your annual tax returns.
This guide addresses several sports betting tax questions.If youre not clear about a specific tax issue, its always wise to consult an accountant, tax professional or financial advisor who can answer questions and help avoid potential errors and penalties.Is Sports Betting Taxable Income?Yes, all gambling income is taxable, not just sports betting.
That includes winnings from poker, casino games, pari-mutuel wagering, keno and lottery.Depending on the form of gambling, payoffs that reach a certain threshold automatically trigger IRS notification.In sports wagering, you will receive a W-2G form if your winnings are 600 or more and the payout is at least 300 times the amount of the wager.The IRS also receives a copy of that W-2G.
It makes no difference if your sports winnings were earned at an online or physical sportsbook or on a parlay wager or longshot futures bet.Even if the winnings were simply added to your online account and never withdrawn, its considered taxable income.If you won prizes instead of cash in a sports betting tournament, the IRS requires you to report the fair market value of those prizes.Check OUT: Looking For The Best Mobile Sports Betting App In Your State?Complete Guide To Sports Betting Apps.
