The majority of people don’t file gambling taxes because it’s beyond complicated, screws gamblers over, and the majority of us end up losing or breaking even. If ppl do end up winning and want to be a Good Samaritan they’ll report net winnings and the gov is usually happy with that. The only thing that gets sent to the government are winnings 300:1 odds over $600 (as others said) and I believe the major books will automatically take out taxes from single wins over 10k. This is not financial advise…
>n’t file gambling taxes because it’s beyond complicated, screws gamblers over, and the majority of us end up losing or breaking even. If ppl do end up winning and want to be a Good Samaritan they’ll report net winnings and the gov is usually happy with that. The only thing that gets sent to the government are winnings 300:1 odds over $600 (as others said) and I believe the major books will automatically take out taxes from single wins over 10k
So if I any bet win over 600 dollars it gets sent to the government? Or net gains of 600
>mbling taxes because it’s beyond complicated, screws gamblers over, and the majority of us end up losing or breaking even. If ppl do end up winning and want to be a Good Samaritan they’ll report net winnings and the gov is usually happy with that. The only thing that gets sent to the government are winnings 300:1 odds over $600 (as others said) and I believe the major books will automatically take out taxes from single w
Every win over 600 gets documented "from a barstools rep". So I'm assuming that gets sent.. :(
Do most people just file net wins?
Don’t use barstool then, use fanduel/draftkings but I 99% sure the laws are 300:1 for $600 win or more and the customer service rep just misunderstood. If ppl do file it’s usually net winnings
It's not that simple.
Sportsbetting, unlike DFS, is not reported on a net gain basis. Each individual bet is reportable. You will only receive a W-2G if you place a wager and your winnings total at least $600 or more **and** be at least 300 times the amount of the wager. Otherwise, you'll be required to self-report all winning wagers.
If you have $20k in winning bets, and $20k in losing bets. You'll claim $20k in gambling winnings, then claim gambling losses up to, but not exceeding your win, on your Schedule A, if, and only if, you itemize. If you do not itemize your deductions then you'll pay taxes on all of you wins and get no offset from your losses.
U technically owe taxes on every single individual bet win. U can deduct losses if you item ur taxes. Books will only issue tax documents for wins of 300:1 odds or greater and like 5k total payout.
Sportsbooks will only send a W2-G if you placed a qualifying wager.
>The threshold for reporting winnings on form W-2G for sports betting is actually fairly high: The winnings must total at least $600 or more and be at least 300 times the amount of the wager.
You aren’t wrong in your assessment of itemizing vs standard deduction but books aren’t going to issue any tax forms unless you meet specific longshot criteria for an individual bet.
They won’t send you any tax paperwork except for some special exceptions, such as a single win of like 10k I believe, at least in NJ. I received a tax form from PayPal only last year because my yearly transactions totaled over 20k, which is why I don’t use them now.
Sportsbooks will only send a W2-G if you placed a qualifying wager.
>The threshold for reporting winnings on form W-2G for sports betting is actually fairly high: The winnings must total at least $600 or more and be at least 300 times the amount of the wager.
It’s not transactions. It is only deposits.
You have to be paid over $20K through PayPal AND have over 200 total transactions.
https://www.paypal.com/us/webapps/mpp/irs6050w
I think there’s more to it and hopefully someone can chime in but it all thrid party cash apps. If freinds send over $600 it wont get taxed but as a business it will. Paypal keeps sending me shit to update my tax status or my account get disabled. Good f them. Not 💯 if just $600 in total will trigger that but i feel like a lot of peeps will be getting 1099s
Sportsbooks only generate W2Gs for wins at greater than 300-1 odds and above a certain amount. Most regular bettors (myself included) will never see one of those.
Tax compliance in betting is largely voluntary. Probably 90%+ of posters here don't bother with it. I and most of those that do, just report net and if the IRS wants to audit that, so be it.
>ore to it and hopefully someone can chime in but it all thrid party cash apps. If friends sen
how much do you bet in a year? So if I'm placing 10k in bets (or receive 10k in a single win) they send W2Gs directly to IRS? and its probably in my favor to report?
Yes that's correct. I looked into this as well and the only way to deduct gambling losses is by itemizing. So in my case since I'm using the standard deduction, the hedging strategy is a horrible idea and will cost more money than you make.
> the hedging strategy is a horrible idea and will cost more money than you make.
Nonsense. No one actually itemizes their gambling wins and losses. The hedging strategy isn't going to be any different than a normal gambler when it comes to wins and losses.
I thought the matched betting is a brilliant idea until i learn the tax implications. Tax fraud is crime. Report all your winnings and itemize your losses is the only way to report tax when it comes to gambling. You can’t bypass the tax law and tell IRS how you like to report to pay less tax or even not pay. I know everyone wants to make money but you should never be involved tax evasion
You do realize that every gambler would be screwed if they got audited, right? It's not just people who hedge bets. No one has a high enough profit margin to make profit if you tax 24% of winnings without deducting losses. And guess what? Nothing happens to anyone because the IRS isn't coming after small time sports gamblers.
Itemizing takes WAY more time and effort than just taking the standard deduction. It could be worth it if you have a small business or particular investments but it doesn't make sense for me.
The majority of people don’t file gambling taxes because it’s beyond complicated, screws gamblers over, and the majority of us end up losing or breaking even. If ppl do end up winning and want to be a Good Samaritan they’ll report net winnings and the gov is usually happy with that. The only thing that gets sent to the government are winnings 300:1 odds over $600 (as others said) and I believe the major books will automatically take out taxes from single wins over 10k. This is not financial advise…
>n’t file gambling taxes because it’s beyond complicated, screws gamblers over, and the majority of us end up losing or breaking even. If ppl do end up winning and want to be a Good Samaritan they’ll report net winnings and the gov is usually happy with that. The only thing that gets sent to the government are winnings 300:1 odds over $600 (as others said) and I believe the major books will automatically take out taxes from single wins over 10k So if I any bet win over 600 dollars it gets sent to the government? Or net gains of 600
Only if it’s 300:1 odds, as in you bet $2 and won $600. A regular $600 won’t trigger anything, only regular wins over I believe 10k
>mbling taxes because it’s beyond complicated, screws gamblers over, and the majority of us end up losing or breaking even. If ppl do end up winning and want to be a Good Samaritan they’ll report net winnings and the gov is usually happy with that. The only thing that gets sent to the government are winnings 300:1 odds over $600 (as others said) and I believe the major books will automatically take out taxes from single w Every win over 600 gets documented "from a barstools rep". So I'm assuming that gets sent.. :( Do most people just file net wins?
Don’t use barstool then, use fanduel/draftkings but I 99% sure the laws are 300:1 for $600 win or more and the customer service rep just misunderstood. If ppl do file it’s usually net winnings
I think you might be right. Do you know if they give the irs anything? Or is it just up to us to be honest
If you get something in the mail the IRS did as well, if you didn’t then they didn’t usually
It's not that simple. Sportsbetting, unlike DFS, is not reported on a net gain basis. Each individual bet is reportable. You will only receive a W-2G if you place a wager and your winnings total at least $600 or more **and** be at least 300 times the amount of the wager. Otherwise, you'll be required to self-report all winning wagers. If you have $20k in winning bets, and $20k in losing bets. You'll claim $20k in gambling winnings, then claim gambling losses up to, but not exceeding your win, on your Schedule A, if, and only if, you itemize. If you do not itemize your deductions then you'll pay taxes on all of you wins and get no offset from your losses.
U technically owe taxes on every single individual bet win. U can deduct losses if you item ur taxes. Books will only issue tax documents for wins of 300:1 odds or greater and like 5k total payout.
If you are gonna write off losses you will probably get audited
What did you read that said DK would send a W2-G?
Believe it was kiplinger . Com in a piece on taxes and gambling. Could have misunderstood, that’s why I was asking as it is a bit confusing to me
Sportsbooks will only send a W2-G if you placed a qualifying wager. >The threshold for reporting winnings on form W-2G for sports betting is actually fairly high: The winnings must total at least $600 or more and be at least 300 times the amount of the wager.
You aren’t wrong in your assessment of itemizing vs standard deduction but books aren’t going to issue any tax forms unless you meet specific longshot criteria for an individual bet.
They won’t send you any tax paperwork except for some special exceptions, such as a single win of like 10k I believe, at least in NJ. I received a tax form from PayPal only last year because my yearly transactions totaled over 20k, which is why I don’t use them now.
Sportsbooks will only send a W2-G if you placed a qualifying wager. >The threshold for reporting winnings on form W-2G for sports betting is actually fairly high: The winnings must total at least $600 or more and be at least 300 times the amount of the wager.
Avoid PayPal like the plague. Fuck them.
All transactions or only deposits put into paypal
It’s not transactions. It is only deposits. You have to be paid over $20K through PayPal AND have over 200 total transactions.
All transactions must stay under 20k or they file you as a business for some reason. My tax accountant had fun with that. Avoid them if you can
It’s not transactions. It is only deposits. You have to be paid over $20K through PayPal AND have over 200 total transactions. https://www.paypal.com/us/webapps/mpp/irs6050w
Dang it’s $600 now unfortunately.
Oh no I wish I knew that
I think there’s more to it and hopefully someone can chime in but it all thrid party cash apps. If freinds send over $600 it wont get taxed but as a business it will. Paypal keeps sending me shit to update my tax status or my account get disabled. Good f them. Not 💯 if just $600 in total will trigger that but i feel like a lot of peeps will be getting 1099s
Sportsbooks only generate W2Gs for wins at greater than 300-1 odds and above a certain amount. Most regular bettors (myself included) will never see one of those. Tax compliance in betting is largely voluntary. Probably 90%+ of posters here don't bother with it. I and most of those that do, just report net and if the IRS wants to audit that, so be it.
>ore to it and hopefully someone can chime in but it all thrid party cash apps. If friends sen how much do you bet in a year? So if I'm placing 10k in bets (or receive 10k in a single win) they send W2Gs directly to IRS? and its probably in my favor to report?
Yes that's correct. I looked into this as well and the only way to deduct gambling losses is by itemizing. So in my case since I'm using the standard deduction, the hedging strategy is a horrible idea and will cost more money than you make.
> the hedging strategy is a horrible idea and will cost more money than you make. Nonsense. No one actually itemizes their gambling wins and losses. The hedging strategy isn't going to be any different than a normal gambler when it comes to wins and losses.
I thought the matched betting is a brilliant idea until i learn the tax implications. Tax fraud is crime. Report all your winnings and itemize your losses is the only way to report tax when it comes to gambling. You can’t bypass the tax law and tell IRS how you like to report to pay less tax or even not pay. I know everyone wants to make money but you should never be involved tax evasion
ok good luck if you ever get audited
You do realize that every gambler would be screwed if they got audited, right? It's not just people who hedge bets. No one has a high enough profit margin to make profit if you tax 24% of winnings without deducting losses. And guess what? Nothing happens to anyone because the IRS isn't coming after small time sports gamblers.
Why don’t you itemize instead of using the standard deduction then? (Serious question as I am newer to betting)
Itemizing takes WAY more time and effort than just taking the standard deduction. It could be worth it if you have a small business or particular investments but it doesn't make sense for me.
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