Sportsbook winnings and the new tax law

[redtuna]

According to the IRS sportsbook winnings and casino winnings are taxable income.Has the new tax law changed anything? Has anyone cashed in a winning betting slip or won big at a Las Vegas casino recently? Do they have new procedures to report winnings to the IRS, make you fill out forms, etc? Is there a threshold at a casino or sportsbook where they do report winnings to IRS?

[Optional]

In New Jersey I believe they will withhold 24% of any winning ticket over $5000, or any win paying over 300-1.

[rangerz2478]

In New Jersey I believe they will withhold 24% of any winning ticket over $5000, or any win paying over 300-1.

Thats where its automatically deducted yea but anyone who wins over 5k in net profit for the year i believe on legal sites is supposed to file as additional income. Will be interesting to see how many do.

[Shifty]

Nothing is reported unless you get a 1099 for hitting at 300-1 odds or higher. The taxpayer is supposed to report winning of any amount.

[Foxx]

Thats where its automatically deducted yea but anyone who wins over 5k in net profit for the year i believe on legal sites is supposed to file as additional income. Will be interesting to see how many do.

Actually, anyone who wins any amount is supposed to report all winning bets as income. Losing bets get deducted as miscellaneous itemized deductions up to the amount of winnings. Even if you have a net loss on the year, you are still supposed to report wagering activity. It's stupid and I wish they would change the law. Maybe with the proliferation of online gambling, there will be a push to make it more sensible.