Announcement

Collapse
No announcement yet.

Sportsbook/Gambling Taxes

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Sportsbook/Gambling Taxes

    I live in Michigan and I know the income tax rate is 4.25%. Is it correct that the federal tax rate on sportsbook/gambling winnings is a flat 24%?

    My second question is what are consider winnings? I’ve read a couple different things. Lets say I place a $50 bet and it pays out $100. Do I pay tax on the $100 or just the $50 I won?

    #2
    Federal taxes - you'd pay at your tax rate, not a flat rate. If you win over a certain amount, you will be issued a W2-G; I think over $600 for the year on a betting app. The amount would be the win amount, not the profit. You can deduct gambling losses against the win. So if you get a W2-G for $600 and you bet $300, you'd pay taxes on $300. The loss deduction does not have to be tied to the specific bet; you can add up all your losses, but you can't take a loss.

    Comment

    Working...
    X