Tax question on US legalized sports books......

Question

Question for those who have actually file taxes on sports betting...

You sign up for 2 sports books accounts, A and B. At end of year, total losses for A is $1000, while B wins $2000 or total winnings of $1000 for the year.

B sends income tax statement to IRS that you won or has income of $2000. As far as I know, A does not send anything to IRS as you didn't have any income from them. Come tax time, you'll have to pay taxes on income of $2000 as IRS will just see the tax statement from B, though you really only has income of $1000.

I understand that one can itemize that you loss $1000 but with the recent tax code changes, the standard deduction is so much higher now so one just take that, you can't then itemize that $1000 loss.

Am I correct that you'll be paying more taxes in this scenario than if you had won $500 from each sports books?

Victoruk26 · Accepted Answer

There are different tax authorities for sports betting, so you should be more careful when filling it out.

gmitran · Answer