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?
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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?
Books only file taxes if you win 600 and the odds are better than 300 to 1, If you file your own, then you just list the wins and losses, it is easy to get the itemized wins and losses with online.
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Books only file taxes if you win 600 and the odds are better than 300 to 1, If you file your own, then you just list the wins and losses, it is easy to get the itemized wins and losses with online.
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