In the U.S., do you have to declare your winnings when you file your taxes?

Question

If you make wagers on a online sportsbook, betting on sports and horse racing. Do you have to state that income on your taxes?? or how does that work?

Answer 1

There is a space on your tax return for both gambling winnings and amusingly illegal gambling winnings. Not quite sure who would be stupid enough to admit that the gambling was illegal on a federal tax form but anyway... Talk to your CPA and tell them what you have won.

Alternatively keep the money in Neteller which is based in the British Isles, draw the money out with a Neteller ATM card and then you won't have made any income that needs to be taxed.

If the American government wants the tax they need to legalize and regulate the online gambling industry, instead of shooting for prohibition.

Answer 2

This is a little tricky. You say that you are in the U.S. and that you have winnings from an on line sports book. But, on line gambling is illegal in the U.S. So I won't tell you if you should or shoul not report this at all.

However I can tell you what the IRS says about non-online gambling. I am not a tax attorney or CPA.

For sports book and casino table games:
If the wager is (a) $600 or more and (b) at least 300 times the amount of the wager.

Example you bet $600 on a long shot 300 to 1, and you win!
That's $180,000 - this is reportable.

I am not a tax attorney, but it looks like if you always bet less than $600 on a game or horse, you never have to report. This goes for blackjack, craps, and roulette too.

Slot machines:
Win $1,200 or more - reportable
No matter what the bet size is.

Keno:
Win $1,500 or more - reportable
No matter what the bet size is.

Answer 3

Yes, gambling winnings are taxable income, however they may be offset by gambling losses as an expenditure when declaring. If you have net gambling winnings you will need to report and pay (a rather whopping percentage) on them. Because sportsbooks are generally run from countries that have little to no gambling laws (Antigua, Costa Rica, Gibraltar, etc) regardless of the amount of your win, they will never hand you the typical reporting form you'd get if you went to Vegas and hit a million dollar slot jackpot, however, if you get audited and have thousands of dollars of unexplained income from gambling, particularly if you are receiving large electronic funds transfers or cashing large checks, you are going to have a very difficult time explaining that to the IRS.

Answer 4

Ok, here's how it works. If you are Canadian and win the Canadian lottery, you get to keep it all, with no taxes. If you are American and win the Canadian lottery, you have to pay taxes to the US government if you are a legal resident of the US. If you are American and win the Canadian lottery, but are a legal resident of Canada and do not file taxes with the US at all, you do not have to pay taxes. I'm guessing that your husband is on some type of international service personnel job in Canada and that he files dual income tax - if that is so, yes he would pay the tax. US and Canada share tax information with each other, so the IRS would know that he won.

Answer 5

I would think that if you won over a certain amount the gambling site would send you a w2, and also turn it in the government stating how much you won. You should ask the company about this. Other than that I don't think you have to say how much you've won.

Answer 6

check with an accountant, but I know that where I'm at you are required to fill out a 1099 when the amount involves $10,000 or better.

Answer 7

Yes, you have to report it. You must report winnings, and then report losses seperately as a deduction unless you are a professional gambler.

Answer 8

Only if you win 2500 or more. Nevada has no state tax, but California does.

Answer 9

Yes, but I think this need money.

Answer 10

Yes, I will be contacting you soon.

Signed
IRS