On Tax Form 1040, simply total your sports betting winnings and put that figure in the “Other Income” spot. There are two forms you’ll need to complete to report your gambling activity: Form 1040 and Schedule A. Reporting your sports betting winnings is easy if you’re just a regular casual sports bettor. Sharps who rely on sports betting winnings as their primary source of income face a different process to comply with tax laws. Note: This advice is directed at recreational sports bettors, not sharps.

How to Accurately Report Your Wins and Losses You can report your betting losses as deductions on your tax form, but they do not affect the $600 threshold for tax liability. This $600 applies to your total winnings when betting on sports, irrespective of sports betting losses. Please note that this $600 doesn’t refer to profit alone. Any and all winnings – from the lottery to bets placed at online sportsbooks – must be reported when you file taxes, even if they do not exceed $600.Īny and all winnings – from the lottery to bets placed at online sportsbooks – must be reported when you file taxes.

Unlike the UK or Canada, American bettors must pay taxes on any winnings that exceed $600 in a single year (or on a bet valued at 300 times the initial wager). Winnings are not capital gains, which are subject to a different set of rules. Gambling is technically categorized as taxable income by the IRS. There Are No Tax Exemptions in the United States If you have more questions or specific queries as to how to pay your taxes under the exact letter of the law, consult a CPA (Certified Professional Account) or a tax lawyer. That’s why we’ve created this catch-all guide for everything you need to know about sports betting winnings when the tax season approaches.īefore we continue, we’re obliged to inform you that while we can point you in the right direction for filing your taxes on your sports betting winnings, we are not attorneys and can’t provide you with legal advice. No matter where you turn, you’re likely to get a different answer. The last thing anyone wants is to be audited, or even worse: hit with a fine or criminal charge.ĭoing your taxes is often just as confusing as it is boring. If you live in the United States (and you’ve netted some cash betting on sports online), you have to report your winnings to remain tax compliant. Keep track of wins and losses to properly complete tax forms when the time comesįiling income tax returns is never enjoyable, but we’ve all got to face the taxman.It is your responsibility to report earnings – sportsbooks will not do this for you.Residents of the United States must report sports bet winnings to the federal government.

Draftkings sportsbook tax rules