Tax laws NY- Gambling

[Machba]

So i spoke 100% more clearly to my Tax guy. No matter what they are coming for you on any 1099 back forms if we FORGET to file them.
Also ANY winnings to an online gambling account over $600 in NYS get a 1099 form even if you lose 100,000 . It is up to you to prove LOSSES, the government already has proof from the 1099s sent to them from companies of your earnings ( all wins are added up as earnings). Also i informed him on the free $300 on ceasars app and told him i won up to $2700 then lost it ALL. He said just by winning over $600 automatically gets me a 1099 for this year and it will be for the whole $2700 i won and i DID not collect .

[Machba]

However much your 1099 says you won , you put EXACT same amount as money LOST.

[EDDIE MONEY LINE]

Thanks for talking to someone Machba. Thats what I was worried about. So they are taxing on unrealized gains which sux for us as gamblers. I was hoping they would only tax on actual amounts withdrawn. So keeping records of losses, also collecting lotto losers from however you get your hands on might help. I thought there was a maximum amount you could claim as losses.

Not sure if there is a way to claim gambling as a business so you can write off other expenses to have your business equal a small loss or perhaps even just a small profit so your sheltering earnings. I feel I should find an accountant to talk to also.

This may end up being a huge pain in the ass unless it proves profitable/ can use a business as a tax shelter and for other benefits

[tbill1]

My two cents... A sports book basing a 1099 on all wins and leaving out the losses is illogical. Brokerage houses don't do that with stock trades. For a fledgling NY industry, it would be a public relations nightmare to see stories of gamblers wiped out doing online gambling and on top of that have a tax liability. Unless you gamble a huge amount of money, for most people the tax laws make it so a standard deduction is optimal. So how would you deduct your losses, even if you could find them? I have always been under the impression that a 1099 would only be sent by a sportsbook if you won $600 which resulted from a 300-1 shot.

[big joe 1212]

DO NOT come to SBR for tax advice!

[EDDIE MONEY LINE]

I guess not. I figured someone would have some useful or helpful tips/ advice

[boscokid]

You can offset gambling wins to losses; so next time you are at the track grab all the losing tickets littering the ground. Now you have "proof" your 1099 winnings were lost on the ponies.

Congrats! You are now a break even gambler and owe no tax.

[thezbar]

You can offset gambling wins to losses; so next time you are at the track grab all the losing tickets littering the ground. Now you have "proof" your 1099 winnings were lost on the ponies.

Congrats! You are now a break even gambler and owe no tax.

Bad idea Bosco. The IRS requires a diary of gambling activities and will look for patternization. Random tickets from the ground used to off set winning is a death sentence if auditor from the government sees them.

Best you stick to Omaha High / Low, Bosco.

[acquavallo]

Just check FAQ \ support with prep entities \ sites that have years of experience with the topic. It's free.
Otherwise you'll always get varying answers when you ask individual people because- out of hundreds of millions, some millions always slip thru, others it's not worth it for IRS to go after.
You want to be certain, not be playing Russian Roulette until bullet finally gets you.

H&R Block, Intuit, etc. softwares provide for gambling 1099's, specifically mention sports betting, provide Schedule for losses and expenses. And encourage the expected ledger diary & receipts keeping.

Pivoting slightly away from gambling to all 1099's in general, IRS expects taxpayers to fork up tax for all income- including when no 1099 issued (this is why you can't avoid a penalty because amount was low \ you thought no 1099 was issued).

NOW REAL LIFE-
I work with DOZENS of people making 5\6 fig yearly from side gig & consulting for many years, with multiple 1099's (@ nothing withheld) EACH year from different entities... Who claim they HAVE NEVER listed 1099 income & IRS has never done anything.
The common threads to all:

1. Receiving some type of government help for low income- small part-time job \ public assistance \ disability \ low retirement pension.
2. MOST travel out of state and claim that the 1099s are mostly reimbursement or can claim enough expense \ mileage \ lodging \ food to match. And worst case claim poverty \ money spent & can't afford to pay back much.

Not one has said they list such income or that they've ever gotten in trouble. And all always file taxes because even with low or no official salary they can still receive the yearly EITC cash refund.

WTF knows anything.

IRS needs to allow anyone to view all 1099s they have in database. Some places say they won't file one and then do, mail can be lost, one can lose track of how many places.

[big joe 1212]

More bad advice just keeps rolling in

[jjgold]

this thread

[teacher10]

[Wilfred]

Not sure if you guys realize how this works or are joking around. However say you are a break even gambler and win $200,000 and lose $200,000 the only way to offset your losses is to itemize your losses of $200,000. Doing this you cannot take the standard deduction so you will ultimately lose, this is just how the US tax code is written.

[patswin]

My two cents... A sports book basing a 1099 on all wins and leaving out the losses is illogical. Brokerage houses don't do that with stock trades. For a fledgling NY industry, it would be a public relations nightmare to see stories of gamblers wiped out doing online gambling and on top of that have a tax liability. Unless you gamble a huge amount of money, for most people the tax laws make it so a standard deduction is optimal. So how would you deduct your losses, even if you could find them? I have always been under the impression that a 1099 would only be sent by a sportsbook if you won $600 which resulted from a 300-1 shot.

I think you are mixing up a 1099 with a W2G, Anything you hit over 300-1 will generate a W2g not a 1099.

[Machba]

DO NOT come to SBR for tax advice!

DO NOT LISTEN TO THIS JOKESTER WHATSOEVER . Clueless on all causes.

[Machba]

More bad advice just keeps rolling in

You must not be able to read.

[tbill1]

I think you are mixing up a 1099 with a W2G, Anything you hit over 300-1 will generate a W2g not a 1099.

Thank you, I stand corrected. Speaking of 1099's, they should be received by 1-31 or soon after. So all those expecting 1099's from their USA books, please let us know that you got them.

[hehfest]

Let's go to the situation room:
If you bet at a kiosk or window and did NOT use your "player tracking rewards card" all year, then you could win all year and not pay a dime of taxes?
But, you play online and you have too?

Correct me if I'm wrong. Adding cash into a kiosk. I mean if you want to live at a sportsbook or be there all the time is this a way around it?

[hehfest]

So i spoke 100% more clearly to my Tax guy. No matter what they are coming for you on any 1099 back forms if we FORGET to file them.
Also ANY winnings to an online gambling account over $600 in NYS get a 1099 form even if you lose 100,000 . It is up to you to prove LOSSES, the government already has proof from the 1099s sent to them from companies of your earnings ( all wins are added up as earnings). Also i informed him on the free $300 on ceasars app and told him i won up to $2700 then lost it ALL. He said just by winning over $600 automatically gets me a 1099 for this year and it will be for the whole $2700 i won and i DID not collect .

If this is true, then that might be one of the most retarded things I've ever heard in my life.

[Machba]

If this is true, then that might be one of the most retarded things I've ever heard in my life.

I agree hoping he is wrong. But he is the tax guy . NOT ME!

[eidolon]

pay $500 to have a tax guy go over your stuff and give you all the info.
Then use that info for future tax years.

[Optional]

If this is true, then that might be one of the most retarded things I've ever heard in my life.

The concept of taxing gambling winnings at all is the crazy thing.

We are betting into a system designed and regulated for the state and the book to have a reliable income and players to lose overall. Which is exactly what happens in real life.


So already taxed funds we use for recreational purposes (it's rec no matter who you are to the regulated systems) is being taxed again if you are in the minority that collects profits.

And worse than that, as is pointed out here, the books do not report net profits, or losses at all.

Plus you can't roll losses from one tax year to the next.


It's bonkers that most gamblers aren't up in arms about it.

[d2bets]

The concept of taxing gambling winnings at all is the crazy thing.

We are betting into a system designed and regulated for the state and the book to have a reliable income and players to lose overall. Which is exactly what happens in real life.


So already taxed funds we use for recreational purposes (it's rec no matter who you are to the regulated systems) is being taxed again if you are in the minority that collects profits.

And worse than that, as is pointed out here, the books do not report net profits, or losses at all.

Plus you can't roll losses from one tax year to the next.


It's bonkers that most gamblers aren't up in arms about it.

Probably because it basically wasn't an issue until legalization in the past couple years. It really does need to be updated and addressed. Should simply be where each book tells you your net win/loss for the year and you add em all up. Lose? No reporting. Win > $2,500? Report your net win. Otherwise, ignore.

[Optional]

Probably because it basically wasn't an issue until legalization in the past couple years. It really does need to be updated and addressed. Should simply be where each book tells you your net win/loss for the year and you add em all up. Lose? No reporting. Win > $2,500? Report your net win. Otherwise, ignore.

That would be way fairer.

But I still strongly disagree with the concept of double taxation on our recreational spending.

[Cabo]

This is from FanDuel's website:


What triggers a Form W-2G for Sportsbook?
FanDuel will issue a Form W-2G for sports betting when both of the following conditions are met:

Winnings (reduced by wager) are $600.00 or more; and
Winnings (reduced by wager) are at least 300 times the amount of the wager
This information comes directly from the Internal Revenue Service (IRS). We adhere strictly to all federal, state, and local tax laws and regulations.

[ex50warrior]

This is accurate for the W-2Gs.

But the 1099-Misc and win/loss statements are new and different. They should start coming out 1 Feb (tomorrow). It'll be a quagmire!!

[DontTailMe]

This is accurate for the W-2Gs.

But the 1099-Misc and win/loss statements are new and different. They should start coming out 1 Feb (tomorrow). It'll be a quagmire!!

Where is this coming from. Every online sportsbook I've looked at says W2-G only, and only in the $600 / 300-1 scenario.

[thezbar]

Not sure if you guys realize how this works or are joking around. However say you are a break even gambler and win $200,000 and lose $200,000 the only way to offset your losses is to itemize your losses of $200,000. Doing this you cannot take the standard deduction so you will ultimately lose, this is just how the US tax code is written.

I understand this all too well. Most racetracks or off-tracks betting parlors have their own " 10%er". For example if I hit a Pick 3 for $3900.00 I could seek out the 10%er, pay him/her $390 and be free of any tax liabilities. It was expected to tip the pari-mutuel clerk also as they generally are aware of what's going on.
With internet betting there is a record of everything. This 10% thing is not on option.
If you have reportable winnings under your standard deduction [Can vary between $5000 and $9000] and don't have a lot of write-offs you will lose some tax return $. I recent years the laws were changed with regards as to what constitutes report a taxable winning wager. For the better.
As for sport wagering I have no first hand of what's going on.

[ex50warrior]

Where is this coming from. Every online sportsbook I've looked at says W2-G only, and only in the $600 / 300-1 scenario.

I got that from both BetMGM and Intuit websites.

[d2bets]

I got that from both BetMGM and Intuit websites.

Intuit???

Was BetMGM for sports *only* and did you hit any 300-1 winner?

[d2bets]

Where is this coming from. Every online sportsbook I've looked at says W2-G only, and only in the $600 / 300-1 scenario.

Fanduel provided an information win/loss last year, but nothing that is officially reported.

[big joe 1212]

DO NOT LISTEN TO THIS JOKESTER WHATSOEVER . Clueless on all causes.

Clueless????

If you only knew what I do for a living.

75% of CPA’s don’t know personal taxes like they should, especially when it comes to gambling.

You keep posting bad info. Your “tax guy” is the clueless one. My advice to you is to find a new one.

[jjgold]

I still do not think it is like stocks

if no 1099 no reporting

[Machba]

Clueless????

If you only knew what I do for a living.

75% of CPA’s don’t know personal taxes like they should, especially when it comes to gambling.

You keep posting bad info. Your “tax guy” is the clueless one. My advice to you is to find a new one.

Advice from Joe biden? I dont give a Fk what you do 4 a living. Ik you 1 dumb mfer! Now go back talking to yourself .

[sportsguy04]

Have friends who make a lot of money and lose a lot of money off draft kings and FD. They have not received any tax documents or reported anything over the last 2 years. I’m not a tax adviser. Just thought it was interesting.