{"id":10069,"date":"2025-02-12T19:33:19","date_gmt":"2025-02-12T19:33:19","guid":{"rendered":"https:\/\/finderica.com\/?p=10069"},"modified":"2025-02-12T19:33:19","modified_gmt":"2025-02-12T19:33:19","slug":"you-do-have-to-file-taxes-for-sports-betting-heres-how","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=10069","title":{"rendered":"You Do Have to File Taxes for Sports Betting: Here&#8217;s How"},"content":{"rendered":"\n<div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"lazyload clicker_number\" style=\"position: absolute; height: 1px; width: 100%\" alt=\"ScoreCard Research\" data-count=\"104.245.38.58,104.245.38.58, 108.162.246.29\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"><\/p>\n<p>Did you pull in some mad cash from betting on NFL games this season? Congrats! Not to rain on your parade, but before you go spending all of your winnings or reinvesting it on another bet, be sure to set some aside for the tax man. Because you do, in fact, need to file taxes for sports betting.<\/p>\n<p>Your future self will thank you for knowing how it works come tax time in the spring. We have the details.<\/p>\n<div class=\"adBorder\" id=\"thepe-98978959\">\n<h3>Need a Hand With Bills?<\/h3>\n<p>Listen, we know it\u2019s tough out there. But there\u2019s no shame in asking for help.<\/p>\n<p><a href=\"https:\/\/partners.thepennyhoarder.com\/ask-for-money-sdyn-prt\/?aff_id=384&amp;aff_sub3=ask-for-money-sdyn-prt\/&amp;aff_sub4=191831\" target=\"_blank\" rel=\"noopener\">These companies<\/a> make it easy to help yourself and your bank account.<\/p>\n<\/div>\n<h2 class=\"wp-block-heading\">Do you have to file taxes for sports betting?\u00a0<\/h2>\n<p>Yes, you have to file taxes on winnings from DraftKings, FanDuel or any other sports betting apps. Don\u2019t be fooled into thinking the authorities won\u2019t notice \u2013 the IRS does care about sports betting winnings.<\/p>\n<h2 class=\"wp-block-heading\">Can my sports betting losses offset my winnings?\u00a0<\/h2>\n<p>You might have read that you\u2019re only taxed on your profits rather than your winnings \u2013 but that\u2019s not quite true as an individual taxpayer. Janet Berry-Johnson \u2013 CPA and Daily Money Manager at <a href=\"https:\/\/fireflyfinancialorganizing.com\/\" target=\"_blank\" rel=\"noopener\">Firefly Financial Organizing<\/a> \u2013 notes that while you can technically itemize your sports betting losses, it\u2019s hard for most people to beat the standard deduction.\u00a0<\/p>\n<p>The standard deduction is quite high since the TCJA passed in 2017. For the 2024 tax year, the standard deduction is:\u00a0<\/p>\n<ul>\n<li>Single or Married Filing Separately: $14,600<\/li>\n<li>Married Filing Jointly or Qualifying Surviving Spouse: $29,200<\/li>\n<li>Head of Household: $21,900<\/li>\n<\/ul>\n<p>\u201cSay you won a total of $10,000 on your sports wagering in 2024,\u201d Berry-Johnson explains. \u201cAt the same time, you lost $10,000 betting on other games.\u00a0<\/p>\n<p>\u201cIf your total itemized deductions \u2013 including things like home mortgage interest, state and local taxes, charitable deductions, out-of-pocket medical expenses, and gambling losses \u2013 are less than the standard deduction available for your filing status, you\u2019ll claim the standard deduction, and you won\u2019t benefit from deducting those losses at all.\u201d<\/p>\n<h2 class=\"wp-block-heading\">What triggers W-2 G paperwork for sports betting?\u00a0<\/h2>\n<p>When you earn enough through sports betting, the casino (or in this case, app) will issue a W-2 G. This paperwork is akin to the W-2 you might be used to receiving every January from your 9-to-5 job. But this is explicitly made for gambling winnings. The app won\u2019t just send this paperwork to you. The IRS will receive a copy, too, so don\u2019t think about trying to skip out on reporting your winnings. They\u2019ll know.<\/p>\n<p>W-2 G reporting is triggered when you win either $5,000 or 300 times the amount wagered. If you meet this threshold, Berry-Johnson says the app will typically ask you to fill out a W-9 so they have all the information they need to get your W-2 G paperwork in order. Then they\u2019ll release your winnings.\u00a0<\/p>\n<p>She also notes that whether you receive a W-2 G or not, the IRS requires you to report all gambling winnings. If you\u2019ve won smaller amounts throughout the year, be sure to include them on your 1040 \u2013 even if they\u2019re not included on your W-2 G.\u00a0<\/p>\n<div class=\"adBorder\" id=\"thepe-259737511\">\n<h3>Need Some Quick Cash?<\/h3>\n<p>If you\u2019re looking to boost your income this month, we\u2019ve got just the thing for you.<\/p>\n<p>From quick gigs to smart side hustles, check out <a href=\"https:\/\/partners.thepennyhoarder.com\/50-ways-sdyn-prt\/?aff_id=384&amp;aff_sub3=50-ways-sdyn-prt\/&amp;aff_sub4=191813\" target=\"_blank\" rel=\"noopener\">these 50 easy ways to make a quick buck<\/a> \u2014 there\u2019s something for everyone.<\/p>\n<\/div>\n<h2 class=\"wp-block-heading\">How much should I set aside for taxes for sports betting?\u00a0<\/h2>\n<p>If you\u2019re issued a W-2 G, the casino or app will be required to withhold 24% of your winnings. However, if you\u2019re in a situation where you have winnings but you\u2019re not issued a W-2 G, saving a portion of that money to pay the IRS during tax season falls on your shoulders.\u00a0<\/p>\n<p>Berry-Johnson says setting aside 24% to 25% is a good guiding rule, but the amount you\u2019ll need varies depending on your personal tax situation.\u00a0<\/p>\n<p>\u201cIf you\u2019re a college student and have little to no other income, you might not owe anything when you file your tax return. On the other hand, if you have a lot of other income from investments, a full-time job, or a business, you might be in a higher tax bracket and need to set aside more.\u201d<\/p>\n<p>She recommends putting this money in a deposit account separate from your everyday checking. That way, it\u2019ll be harder to spend throughout the year. You want to ensure you actually have that savings at the ready when your tax bill comes due in the spring.<\/p>\n<h2 class=\"wp-block-heading\">Where do I put gambling winnings on my 1040?<\/h2>\n<p>When you have gambling winnings, you\u2019ll have to file a Schedule 1 with your 1040. Look for the line on Schedule 1 that says \u201cOther Income\u201d. That\u2019s where you\u2019ll put your total winnings from your sports betting endeavors throughout the year.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Are taxes different for professional gamblers?<\/h2>\n<p>Yes. Professional gamblers can file their wins and losses as business profit and losses on a Schedule C. Berry-Johnson says the IRS doesn\u2019t have hard-and-fast rules around who qualifies as a professional gambler, but they will examine your claims to make sure you\u2019re not cheating the system just so you can deduct your losses dollar-for-dollar. Generally speaking, they\u2019re looking to see if you:<\/p>\n<ul>\n<li>Have a high level of expertise.<\/li>\n<li>Put time and effort into improving your skills.<\/li>\n<li>Make all or most of your income from gambling and treat it like a business.<\/li>\n<\/ul>\n<p>Berry-Johnson currently lives and works in Omaha, Nebraska, but she grew up and started her accounting career in Nevada. Her father was a casino cage manager in Las Vegas. She recounts some sage advice he gave her one night when she was young.<\/p>\n<p>\u201cWe were looking out over the Las Vegas Strip with all of its lavish towers, lights and fountains. [He told me,] \u2018Casinos don\u2019t make all their money because their customers are winning.\u2019\u201d<\/p>\n<p>As you\u2019re coming off the high of a big win, you might think you could do this professionally. But before you sell the family farm to become a \u201cprofessional gambler\u201d for tax purposes, it\u2019s important to remember that the house always wins.\u00a0<\/p>\n<div class=\"adBorder\" id=\"thepe-484725990\">\n<h3>Is Your Paycheck Not Going As Far As It Used To?<\/h3>\n<p>We get it. <em>Everything<\/em> is more expensive than it used to be, but your paycheck hasn\u2019t kept up.<\/p>\n<p>When money is tight, <a href=\"https:\/\/partners.thepennyhoarder.com\/when-money-is-tight-sdyn-prt\/?aff_id=384&amp;aff_sub3=when-money-is-tight-sdyn-prt\/&amp;aff_sub4=191766\" rel=\"false noopener\" target=\"_blank\">these resources<\/a> will help nearly everyone.<\/p>\n<\/div>\n<p><em>Pittsburgh-based writer Brynne Conroy is the founder of the Femme Frugality blog, DISABILIFINANCE and the author of \u201cThe Feminist Financial Handbook.\u201d She is a regular contributor to The SS.<\/em><\/p>\n<p>        <!-- ACF Financial Disclaimer --><\/p>\n<p>        <!-- End ACF Financial Disclaimer --><\/p>\n<p>        <!-- Newsletter Signup Form --><\/p>\n<div class=\"newsletter-signup-wrapper-for-digioh\">\n<div class=\"col-xs-12 newsletter-wrap flex-row\">\n<div class=\"container flex-container\">\n<div class=\"col-xs-12 new-newsletter-form\">\n<p class=\"text-subheading\">Ready to stop worrying about money?<\/p>\n<p class=\"text-get-daily\">Get the SS Daily<\/p>\n<p class=\"email-privacy-policy-blurb-white\">\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<p>        <!-- End Newsletter Signup Form --><\/p><\/div>\n<p><script type=\"text\/javascript\" id=\"wp-fcapi-js-before\">\n\/* <![CDATA[ *\/\n!function(f,b,e,v,n,t,s)\n{if(f.fbq)return;n=f.fbq=function(){n.callMethod?\nn.callMethod.apply(n,arguments):n.queue.push(arguments)};\nif(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\nn.queue=[];t=b.createElement(e);t.async=!0;\nt.src=v;s=b.getElementsByTagName(e)[0];\ns.parentNode.insertBefore(t,s)}(window, document,'script',\n'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\nfbq('init', '263664193816679');\n\/* ]]> *\/\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.thepennyhoarder.com\/taxes\/taxes-for-sports-betting\/\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Did you pull in some mad cash from betting on NFL games this season? Congrats! Not to rain on your parade, but before you go spending all of your winnings or reinvesting it on another bet, be sure to set some aside for the tax man. Because you do, in fact, need to file taxes<\/p>\n","protected":false},"author":1,"featured_media":10070,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[188],"tags":[2433,1264,255,2147,315],"class_list":{"0":"post-10069","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-taxes","8":"tag-betting","9":"tag-file","10":"tag-heres","11":"tag-sports","12":"tag-taxes"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/10069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10069"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/10069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/10070"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}