Taxes on Gambling Winnings Differ From State to State

Depending on your income, if you are in a higher tax bracket, you will still have to pay any additional taxes when you claim your sports betting win as part of your income.

A copy of this form will also be sent to the IRS, so be sure that any gambling winnings you report on your income tax return are at least equal to the sum of any Forms W-2G you receive. If you win $600 or more at a gambling facility be prepared to receive Form W-2G (Certain Gambling Winnings).However, you can’t assume that is the only tax you will owe on your winnings. You may also be taxed at the betting venue if your win is 300 times the original bet, even if it is less than the $5,000 threshold.In general, if you win $5,000 or more at a gambling venue, the proprietor of the venue will withhold federal taxes at the current tax rate of 24 percent.Contact our NYC CPA office for additional clarification. So whether you are an infrequent gambler, or you take gambling more seriously, the following are some tax implications you need to be aware of if you participate in sports betting, lotteries and other gambling activities. It’s easy to see why many sports fans are excited to be able to casually (and legally) bet on their favorite teams, however, many states and the IRS have also been keenly interested in this decision from a tax perspective due to the fact that the annual value of illegal sports wagers is about $150 million. This May, the Supreme Court reversed the law that prohibited sports betting in physical locations like casinos. Home » NYC CPA on New Sports Gambling Tax Implications

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