Kronke
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Will sports betting be taxed?
(05-15-2018 07:15 PM)Ohio Poly Wrote: (05-14-2018 10:51 AM)Kronke Wrote: I'd imagine it will be vary state by state, but in Vegas, no, you aren't taxed when you collect, and are responsible for tracking your wins and losses.
Pretty sure the casinos are required to withhold part of a "large" winnings payout.
Nope, you're assuming the law for slots or keno or other long odds bets is the same for sports.
The vast majority of sports bets are even money (minus the vig) wagers. Only time they would make you fill out a W-2G is if your bet was at 300/1 or longer odds. Other than that, if you win over $10,000, they'll make you fill out a form that goes to the IRS for anti-money laundering purposes, but they don't take anything out.
(This post was last modified: 05-15-2018 07:41 PM by Kronke.)
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05-15-2018 07:29 PM |
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Ohio Poly
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RE: Will sports betting be taxed?
"https://blog.turbotax.intuit.com/income-and-investments/sports-gambling-and-how-your-winnings-are-taxed-2-17916/"
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05-16-2018 07:13 AM |
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Kronke
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RE: Will sports betting be taxed?
(05-16-2018 07:13 AM)Ohio Poly Wrote: "https://blog.turbotax.intuit.com/income-and-investments/sports-gambling-and-how-your-winnings-are-taxed-2-17916/"
Is that not exactly what I said?
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05-16-2018 11:00 AM |
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thespiritof1976
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RE: Will sports betting be taxed?
Prediction: they tax sports betting and they'll get into even MORE debt.
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05-16-2018 11:01 AM |
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Ohio Poly
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RE: Will sports betting be taxed?
(05-15-2018 07:29 PM)Kronke Wrote: (05-15-2018 07:15 PM)Ohio Poly Wrote: (05-14-2018 10:51 AM)Kronke Wrote: I'd imagine it will be vary state by state, but in Vegas, no, you aren't taxed when you collect, and are responsible for tracking your wins and losses.
Pretty sure the casinos are required to withhold part of a "large" winnings payout.
Nope, you're assuming the law for slots or keno or other long odds bets is the same for sports...
....but they don't take anything out.
"The news about taxes on gambling winnings doesn’t end there. The gambling institution is required to withhold 25% of your winnings as federal withholding tax."
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05-16-2018 11:07 AM |
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Kronke
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RE: Will sports betting be taxed?
(05-16-2018 11:07 AM)Ohio Poly Wrote: (05-15-2018 07:29 PM)Kronke Wrote: (05-15-2018 07:15 PM)Ohio Poly Wrote: (05-14-2018 10:51 AM)Kronke Wrote: I'd imagine it will be vary state by state, but in Vegas, no, you aren't taxed when you collect, and are responsible for tracking your wins and losses.
Pretty sure the casinos are required to withhold part of a "large" winnings payout.
Nope, you're assuming the law for slots or keno or other long odds bets is the same for sports...
....but they don't take anything out.
"The news about taxes on gambling winnings doesn’t end there. The gambling institution is required to withhold 25% of your winnings as federal withholding tax."
That is a continuation of the previous paragraphs, and is the exact example I gave. 300/1 or greater odds, and it falls under the rules of a lottery. They also mention DFS (daily fantasy sports), which is also very long odds and is not the same "sports betting" that was ruled on this week by SCOTUS. Example: You pay for a $1 game, draft a lineup, and play against thousands of other people. Grand prize is let's say $100,000, so if you won, the institution (FanDuel for example) would hold out 25% for taxes, because you made 100,000/1 on your money.
If it's an even odds sports wager, they aren't taking taxes out. I'm speaking from experience.
Quote:Win at fantasy football or any other sports pool and your winnings will be considered income by the IRS. If you win at least 300 times and or the payoff is $600 or above, the gambling facility will ask for your social security number to send a form to the Internal Revenue Service.
You’ll also be subject to this reporting if you win $1,200 at slots or bingo or $1,500 at keno. Uncle Sam doesn’t have a place at the table during your weekly poker get-togethers with your buddies, but if you win $5,000 or more in a poker tournament the sponsor will be reporting your winnings to the IRS.
The news about taxes on gambling winnings doesn’t end there. The gambling institution is required to withhold 25% of your winnings as federal withholding tax.
(This post was last modified: 05-16-2018 11:25 AM by Kronke.)
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05-16-2018 11:17 AM |
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Ohio Poly
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RE: Will sports betting be taxed?
You may not have won at a level that required withholding:
https://www.cnbc.com/2018/05/14/sports-b...ax-it.html
"Generally speaking, if your winnings are above $5,000, the payer, such as a casino, is required to withhold federal taxes. Effective this year, that withholding rate is 24 percent, down from the previous 25 percent."
(This post was last modified: 05-16-2018 01:38 PM by Ohio Poly.)
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05-16-2018 12:20 PM |
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Kronke
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RE: Will sports betting be taxed?
"Generally speaking"
In other words, she doesn't know the details, so she used as broad of language as possible in attempt to disguise her ignorance. She's wrong (making the same mistake you are), in that generally speaking in terms of the vast majority of sports bets (even money wagers), taxes are not withheld.
Keep 'em coming.
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05-16-2018 12:52 PM |
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Ohio Poly
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RE: Will sports betting be taxed?
https://www.hrblock.com/tax-center/incom...nings-tax/
Withholding is required when the winnings, minus the bet, are:
More than $5,000
At least 300 times the amount of the bet
You should receive a copy of your Form W-2G showing the amount you won and the amount of tax withheld. Even if you don’t receive a Form W-2G, include your winnings on your return.
(This post was last modified: 05-16-2018 02:08 PM by Ohio Poly.)
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05-16-2018 01:44 PM |
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Ohio Poly
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RE: Will sports betting be taxed?
(05-16-2018 01:47 PM)Kronke Wrote: (05-16-2018 01:44 PM)Ohio Poly Wrote: https://www.hrblock.com/tax-center/incom...nings-tax/
Withholding is required when the winnings, minus the bet, are:
More than $5,000
At least 300 times the amount of the bet
You should receive a copy of your Form W-2G showing the amount you won and the amount of tax withheld. Even if you don’t receive a Form W-2G, include your winnings on your return.
These are written as 'OR' conditions (see the prior bulleted lists).
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05-16-2018 02:16 PM |
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Kronke
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Will sports betting be taxed?
(05-16-2018 02:16 PM)Ohio Poly Wrote: (05-16-2018 01:47 PM)Kronke Wrote: (05-16-2018 01:44 PM)Ohio Poly Wrote: https://www.hrblock.com/tax-center/incom...nings-tax/
Withholding is required when the winnings, minus the bet, are:
More than $5,000
At least 300 times the amount of the bet
You should receive a copy of your Form W-2G showing the amount you won and the amount of tax withheld. Even if you don’t receive a Form W-2G, include your winnings on your return.
These are written as 'OR' conditions (see the prior bulleted lists).
That's where you're wrong. Not when it comes to sports (even odds wagers). Keep scrolling up, and look at the types of winnings you cited. Only time sports winnings qualify is if they are at >300/1 odds, at which point they fall under the rules of a lottery (as I said earlier in the thread) -- think parlays, futures, etc.
Quote:Cash winnings include money you received from:
Lottery payouts
Sweepstakes
Bingo
Raffles
Poker and other games
Keno
Slot machines
(This post was last modified: 05-16-2018 04:17 PM by Kronke.)
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05-16-2018 02:22 PM |
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Ohio Poly
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RE: Will sports betting be taxed?
If you bet $50k+vig and win $50k on a game you won't be walking out of the casino with the $50k in winnings on that game.
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05-16-2018 08:51 PM |
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Kronke
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Will sports betting be taxed?
(05-16-2018 08:51 PM)Ohio Poly Wrote: If you bet $50k+vig and win $50k on a game you won't be walking out of the casino with the $50k in winnings on that game.
Yeah, you will.
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05-16-2018 08:53 PM |
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HeartOfDixie
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RE: Will sports betting be taxed?
(05-16-2018 08:53 PM)Kronke Wrote: (05-16-2018 08:51 PM)Ohio Poly Wrote: If you bet $50k+vig and win $50k on a game you won't be walking out of the casino with the $50k in winnings on that game.
Yeah, you will.
Most of the time you are right.
Some Casinos have cutoffs after which they are going to sit you down and have you sign some forms.
But, in general, they are under no duty whatsoever to withhold anything.
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05-16-2018 08:56 PM |
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Kronke
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Will sports betting be taxed?
(05-16-2018 08:56 PM)HeartOfDixie Wrote: (05-16-2018 08:53 PM)Kronke Wrote: (05-16-2018 08:51 PM)Ohio Poly Wrote: If you bet $50k+vig and win $50k on a game you won't be walking out of the casino with the $50k in winnings on that game.
Yeah, you will.
Most of the time you are right.
Some Casinos have cutoffs after which they are going to sit you down and have you sign some forms.
But, in general, they are under no duty whatsoever to withhold anything.
I’ve already mentioned said forms. Anything over $10k, and you’ll fill out a CTR form that is sent to the IRS for anti-money laundering purposes, but no taxes are withheld.
(This post was last modified: 05-16-2018 09:01 PM by Kronke.)
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05-16-2018 08:57 PM |
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HeartOfDixie
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RE: Will sports betting be taxed?
(05-16-2018 08:57 PM)Kronke Wrote: (05-16-2018 08:56 PM)HeartOfDixie Wrote: (05-16-2018 08:53 PM)Kronke Wrote: (05-16-2018 08:51 PM)Ohio Poly Wrote: If you bet $50k+vig and win $50k on a game you won't be walking out of the casino with the $50k in winnings on that game.
Yeah, you will.
Most of the time you are right.
Some Casinos have cutoffs after which they are going to sit you down and have you sign some forms.
But, in general, they are under no duty whatsoever to withhold anything.
I’ve already mentioned said forms. Anything over $10k, and you’ll fill out a form that is sent to the IRS for anti-money laundering purposes, but no taxes are withheld.
Well, there are some very limited situations that they will withhold.
But, they are so rare as to be nearly meaningless but they do keep the broad blanket statement made earlier from being true.
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05-16-2018 09:01 PM |
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Kronke
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Will sports betting be taxed?
(05-16-2018 09:01 PM)HeartOfDixie Wrote: (05-16-2018 08:57 PM)Kronke Wrote: (05-16-2018 08:56 PM)HeartOfDixie Wrote: (05-16-2018 08:53 PM)Kronke Wrote: (05-16-2018 08:51 PM)Ohio Poly Wrote: If you bet $50k+vig and win $50k on a game you won't be walking out of the casino with the $50k in winnings on that game.
Yeah, you will.
Most of the time you are right.
Some Casinos have cutoffs after which they are going to sit you down and have you sign some forms.
But, in general, they are under no duty whatsoever to withhold anything.
I’ve already mentioned said forms. Anything over $10k, and you’ll fill out a form that is sent to the IRS for anti-money laundering purposes, but no taxes are withheld.
Well, there are some very limited situations that they will withhold.
But, they are so rare as to be nearly meaningless but they do keep the broad blanket statement made earlier from being true.
Covered them, as well. Anything at >300/1 odds over a certain amount, which in a sports book is few and far between. Parlays and futures, basically. The vast majority of sports bets are perceived even odds wagers, hence why I said generally they are not taxed. Doesn’t mean you aren’t responsible for tracking and reporting your winnings and paying your taxes (or deducting your losses) at the end of the year, just that it isn’t withheld by the book.
Poly is just being stubborn, and thinks the rules for slots and keno generally apply to sports. W-R-O-N-G
(This post was last modified: 05-16-2018 09:08 PM by Kronke.)
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05-16-2018 09:06 PM |
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HeartOfDixie
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RE: Will sports betting be taxed?
(05-16-2018 09:06 PM)Kronke Wrote: (05-16-2018 09:01 PM)HeartOfDixie Wrote: (05-16-2018 08:57 PM)Kronke Wrote: (05-16-2018 08:56 PM)HeartOfDixie Wrote: (05-16-2018 08:53 PM)Kronke Wrote: Yeah, you will.
Most of the time you are right.
Some Casinos have cutoffs after which they are going to sit you down and have you sign some forms.
But, in general, they are under no duty whatsoever to withhold anything.
I’ve already mentioned said forms. Anything over $10k, and you’ll fill out a form that is sent to the IRS for anti-money laundering purposes, but no taxes are withheld.
Well, there are some very limited situations that they will withhold.
But, they are so rare as to be nearly meaningless but they do keep the broad blanket statement made earlier from being true.
Covered them, as well. Anything at >300/1 odds over a certain amount, which in a sports book is few and far between. Parlays and futures, basically. The vast majority of sports bets are perceived even odds wagers, hence why I said generally they are not taxed. Doesn’t mean you aren’t responsible for tracking and reporting your winnings and paying your taxes (or deducting your losses) at the end of the year, just that it isn’t withheld by the book.
Poly is just being stubborn, and thinks the rules for slots and keno generally apply to sports. W-R-O-N-G
Well, I was talking about other circumstances in which taxes would be withheld from an individual at a casino after they won.
I’ll take your word for it on the odds etc. I know taxes not betting.
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05-16-2018 09:10 PM |
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Fo Shizzle
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RE: Will sports betting be taxed?
(05-14-2018 10:51 AM)Kronke Wrote: I'd imagine it will be vary state by state, but in Vegas, no, you aren't taxed when you collect, and are responsible for tracking your wins and losses.
Any winnings over $1999 on a slots get you an IRS pink slip. I happily paid my tribute last year after hitting for $4700. First and only time leaving Vegas with more than I entered with.
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05-17-2018 06:09 AM |
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