The IRS is sending out tax refunds: See how the average amount compares so far
18 February 2023
WICHITA, Kan. (KSNW) – As the Kansas City Chiefs brought home the Lombardi trophy, some fans who bet on Kansas City are bringing home pockets full of cash.
Whether you win in a casino or a sportsbook, local tax experts advise people to report all earnings on your 1040 tax form.
“If you win, it’s taxable income. Whether you win a dollar on a scratcher at the lottery or whether you win $10,000 on a sports bet, it’s all taxable income. It all should be included on your 1040,” said Liberty Tax General Manager Shane Albrecht.
Albrecht says casinos and sports betting apps will automatically generate a W2-G form if earnings exceed $1,200. He says if a form is not generated, all income should still be reported.
“I think a lot of people just think they can get away with it … I mean, you’re supposed to report it,” Albrecht added, “And then if they do get the W2-G and don’t report it, they will eventually be getting a letter from the IRS, And they don’t want to see that.”
Albrecht also explained that if you win at a casino outside of Kansas, a tax form should be filed for that state.
He said there is potential to write off gaming losses, but only up to the amount of money earned. All winnings will be taxed at a rate dependent on the person’s overall income.