In its May 2018 decision, the U.S. Supreme Court opened the door for legalized sports betting. Since the ruling, companies like DraftKings, FanDuel, and BetMGM have built a national presence along with some states’ online casinos. However, many are still unsure how to report winnings and/or losses. Whether it is traditional or online gambling, or sports betting, the IRS treats it all the same. Let’s dive into how the IRS treats these winnings and how losses can be a tax benefit for certain individuals.Read More
Tax Warrior Chronicles
The Tax Warriors® practice their craft in a region full of gaming houses. Delaware, New Jersey and now Pennsylvania all have a significant footprint in the gambling industry on the east coast. So it behooves us to know the ins and outs of how gaming winnings and losses may affect tax returns. These states also participate in the Powerball lottery in addition to having their own individual lottery drawings and various horse racing venues. Delaware even has sport wagering.
United States v Hom
For the first time ever, the crown jewel of American sports, the Super Bowl, is only ninety minutes up the New Jersey Turnpike from the den of The Tax Warriors’ Philadelphia headquarters. How ironic it is that the big game, which brings gigantic revenues to local economies, is being played in the highest-taxed state in America—New Jersey? But beyond that, this year’s big game pits the Denver Broncos against the Seattle Seahawks in Super Bowl XLVIII. The big game has historically brought about friendly parties, great halftime shows, funny commercials, and of course, gambling.
We’ve been conditioned to think that nearly every dollar added to our pocket is taxed. So when something isn’t taxed, it seems truly remarkable (or overlooked). When you add that it’s gambling winnings we’re talking about, the idea that anything isn’t taxed is, well, too good to be true. Confused? Allow the Tax Warriors to explain.