Quote:
How does sportsbet tax work?
Do you only get taxd on your profit?
DISCLAIMER: THE BELOW IS NEITHER LEGAL NOR ACCOUNTING ADVICE. I AM NOT YOUR ATTORNEY. IF NECESSARY, YOU SHOULD RETAIN AN ATTORNEY OR ACCOUNTANT IN YOUR JURISDICTION TO ADVISE YOU.
Assuming you are filing as an amateur:
Gross wins go on the "Other Income" line of your Form 1040. You can either take the standard deduction or itemize your deductions. If you itemize deductions, then you deduct gross losses on the "Other Miscellaneous Deductions" line of your Schedule A, and you cannot take the standard deduction. If you take the standard deduction, then you get the standard deduction amount ($24,000 for 2018), and you cannot itemize your deductions (which results in not being able to deduct losses).
People filing as a professional gambler use Schedule C to report both gross wins and gross losses and the net amount is reflected on the appropriate line on the Schedule 1040. A professional gambler is also going to have self employment tax to pay and have to file Schedule SE for that.
The above is for federal taxes. States all have different systems of their own (for example: (i) some have no income tax in general, (ii) some allow wins and losses to be netted and the net amount reported and (iii) some tax gross wins and do not allow losses to be deducted at all).
The following is a link to a thread about how U.S. income taxes work (it states that it is for poker, but all gambling is treated the same with respect to general tax purposes so a lot of it should be able to be applied to sports betting):
https://forumserver.twoplustwo.com/5...-poker-740589/
DISCLAIMER: THE ABOVE IS NEITHER LEGAL NOR ACCOUNTING ADVICE. I AM NOT YOUR ATTORNEY. IF NECESSARY, YOU SHOULD RETAIN AN ATTORNEY OR ACCOUNTANT IN YOUR JURISDICTION TO ADVISE YOU.
Last edited by Lego05; 05-29-2018 at 01:29 AM.