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As football season hits full swing, sports gamblers need to be aware they have to file their winnings on their taxes.
JACKSONVILLE, Fla. — With football season in full swing, many sports fans may feel inclined to bet on their favorite teams. However, with a big win comes big responsibility.
Do you need to report sports betting winnings on your taxes?
Yes, sports betting winnings need to be reported as income on taxes.
WHAT WE FOUND
“The IRS requires that any gambling winnings must be reported and are subject to federal income tax,” said Gunn.
According to the IRS in publication 525, gambling winnings are considered a form of income and have to be reported on form 1040B.
That includes fantasy sports winnings or money won on apps, regardless of the amount.
If you win more than $600 on sports betting, you’ll have another form to fill out.
“They would issue a W-2G, as in gambling, most likely, if you have winnings at a professional casino,” said Gunn.
On the flip side, you are allowed to report sports gambling losses as well.
You can deduct losses up to the point you win.
For example, if you win $5,000 but lose $10,000, you can deduct up to $5,000 on your taxes.
“You always report income because that’s what the IRS is looking for, but at the same time, don’t short change yourself and not deduct and deductions you’re also entitled to,” said Gunn.
Sports betting is still illegal in Georgia, however, if you win money illegally, you still have to report it on your taxes. Otherwise, you’ll be breaking another law.
Sports betting is technically legal in Florida, however, it isn’t operational yet amid a lawsuit at the Florida Supreme Court.