Matt Keefer, Director of Tax Services at Gorfine, Schiller & Gardyn, discusses what taxpayers need to know about how to report their taxable winnings from sports betting and gambling.
This may come as a surprise for many sports betting enthusiasts, but did you know that winnings from gambling are considered taxable income and need to be reported on your tax return for 2022?
The taxable income is the winnings, minus the actual wager. Fortunately, many online gambling sites like DraftKings and FanDuel SportsBook have tools for tracking all winnings for tax purposes. However, for big-time betters and professional gamblers, tracking all winnings for tax purposes can be complex and challenging. If you plan to make sports betting a main source of income, there may be more opportunity for you to write off expenses like a small business.
Here are key highlights from this interview:
- A high-level overview of sports betting and tax reporting. (:35)
- How to deduct your gambling losses. (2:22)
- How taxpayers can best go about managing their taxes when it comes to gambling. (3:06)
- How GSG can help. (4:58)
- How winnings on bonus bets are taxable. (6:07)
If you are a gambling enthusiast and need guidance on how to best report your taxable winnings, please contact us here.Categories: Podcast, Tax, Tax Planning