04.05.2024

TRACY BYRNES: Sports betting, fantasy leagues, they are everywhere these days. Are your winnings taxable? Is it just like gambling winnings? Are you going to owe tax? Probably. Lisa Green Lewis, CPA and TurboTax expert, is here to talk to us about all of it. Lisa, gambling winnings, taxable, yes? LISA GREENELEWIS: Yes. Gambling winnings, winnings from sports betting, fantasy leagues, those are all taxable. And for sports betting and fantasy leagues, if you make $600 or more, then the payer is going to report it to the IRS. And then depending on what other type of gambling you're doing, like, if it's slot machines, the threshold is at $1,200 or more.

They will report it to the IRS. TRACY BYRNES: So if you're placing bets with an app or a casino or something like that, they have somewhat of a system, and they should report to you. You should get some documentation showing your winnings and/or losings. But what about the office pool? You know, we have March Madness going on. We had a big Super Bowl. Like, there's winnings there. In theory, that should be reported, shouldn't it? LISA GREENELEWIS: Right, yes, it should. Even if it doesn't make the threshold of, like, we're talking about sports gambling, you are supposed to report that income. TRACY BYRNES: Now the confusing part, I think, about it is your winnings and your losses are reported in two separate places because you don't actually get dollar for dollar, do you? LISA GREENELEWIS: Right.

You can't offset your losses dollar for dollar against your gains. And in order to deduct your losses, you have to be able to itemize your deductions. So that's when your deductions are more than the standard deduction, which is $12,550 for single and $25,100 for married filing jointly. So that's one thing to keep in mind. And then also your losses can't exceed your gambling winnings. So meaning, you know, you can't come up with a net loss after you take the losses against the gains. TRACY BYRNES: Right, which is a huge point, especially for younger people thatand I'm generalizing, right-- you're younger.

You probably get the standard deduction.. You can't take your losses so just remember that.. But just because you bet on a phone. doesn't mean it's taxfree.. So keep in mind.. Look for the documentation.. Report everything.. Lisa GreeneLewis, thank you so much for explaining to us.. LISA GREENELEWIS: Thank you for having me.