Sports betting is one of the favorite past times and hobbies that many are engaged into. Aside from the fact that it levels up the excitement of watching your favorite team or athlete and seeing the action as it unfolds, it gives the opportunity to make money as well.
Kind of Unfair?
What most people don’t know is that, winnings they get from sports gambling are also subject to income tax. With that said, it has to be reported on the tax return; this is regardless if you do not receive any tax documentations for your gambling income.
These gambling agencies are not necessarily mandated to report winnings unless someone have won at least 300x of what they’ve bet on or over 600 dollars.
On the other hand, for bettors, they’re the one who is required to file the report of their winnings as part of their personal tax return.
You might have to pay the approximate tax payments in case that the agency didn’t withhold Medicare or Social Security taxes.
Besides, it is fairly simple to report gambling winnings. All that has to be done is to look for “Other Income” line in the 1040 Form and disclose the figure there. If ever you’ve lost money on the other hand, you can deduct that figure to your report. The losses could be claimed as itemized deduction onto Schedule A.