Hey guys I have a questions and hope you can help me out. I want to know, how do I go about reporting my income from sports betting, this is the first year I will do it and would like to know. Someone told me that sports betting income is tax free, sounds kind of crazy!!! so I want to know the real answer to it. Thanks alot!
If you got a 10whatever it is for Gambling winnings you should report it. Technically you should report it anyway, but if not paper trail, then it's up to you...You can write off your gambling losses up to but not over the amount of your winnings.. So, if you say have a 10whatever form, claim it then deduct the same for losses...assuming you have them and can document if necessary.
No he doesn't. W-2's are only given when taxes are withheld from proceeds. The only way the IRS knows that you have gamblings winnings is if you are sent a 1099 from the place you won the money. If you feel the need to report non-1099 gambling winnings, they go on line 21 as other income.
well now, there are a chitload of variables that need to be addressed.
If you have received a W-2G, you claim such winnings as other income on page one of Form 1040 and you deduct all losses up to your winnings as an itemized deduction of Schedule A.
If you want to say you gamble for a living, or as a professional, you can choose to file Schedule C and attach it to your 1040. On such form, you would claim all gambling revenues and deduct all expenses related to gambling activities (not just gambling losses). This treatment raises other issues and potential red flags. If you want to try and claim losses and actually reduce gross income, you may have to prove it's really a business and not a hobby. If you show net income, not only will you pay income taxes, you'll have to pay self employment taxes.
Claiming it as a business raises one more very important issue. Losses from illegal activities are not deductible, although income from illegal activities is taxable (it's good to be the government). If sports gambling is illegal in your state, you're fucked.
If you have received a W-2G, you claim such winnings as other income on page one of Form 1040 and you deduct all losses up to your winnings as an itemized deduction of Schedule A.
If you want to say you gamble for a living, or as a professional, you can choose to file Schedule C and attach it to your 1040. On such form, you would claim all gambling revenues and deduct all expenses related to gambling activities (not just gambling losses). This treatment raises other issues and potential red flags. If you want to try and claim losses and actually reduce gross income, you may have to prove it's really a business and not a hobby. If you show net income, not only will you pay income taxes, you'll have to pay self employment taxes.
Claiming it as a business raises one more very important issue. Losses from illegal activities are not deductible, although income from illegal activities is taxable (it's good to be the government). If sports gambling is illegal in your state, you're fucked.
Damn, should know this better but I think if you are a professional gambler (sched C), you still can only deduct losses to the extent of your gain. But you can deduct a lot of other stuff....I think a good one is business use of home....and your computer, travel exp, etc.....
I was gonna say that professional gamblers are not subject to self employment, but I think that is for traders (I don't do taxes for either occupation)
Getting back to the non-professional gamblers, keep in mind, if you are claiming gambling winnings, do NOT net your losses on page 1 of the return....as willie said, it is an itemized decuction on your schedule A. The shitty thing is that if you are a standard deduction taxpayer (most that don't own a mortgage), you CANNOT deduct your losses, but must report your winnings....netting the two I think would move you to the top of the audit list.
