Could someone please tell me if I am assuming correctly? If my state has an online sports book, will every single win be reported to the IRS? If I make 200 bets of the same amount for the year and 100 are winners where I am essentially even, will the 100 wins be reported separate from the 100 losses? So if I don't itemize (most people don't after the latest tax changes) I will be paying taxes even though I was even?
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You will have to look at your states laws. Or just ask at the counter of a book what they report.Originally posted by tbill1
But it's most likely to be similar to how it works in Las Vegas.
Just tickets that win over 300/1 and some amount like $10k as the reportable levels..Comment -
Thanks for your reply...Just want to double check-you are not making a distinction between being an anonymous better at a casino window and an online bettor with a paper trail -as far as how taxes are reported?Originally posted by OptionalComment -
Paper trail is created if you win 300/1 or greater parlay OR if you win a net of $5000 or more. W2G will be issued. So if you bet (and win) $2500 to win $5500 it would trigger. If you bet $2500 to win $4500 it would not trigger.
Casinos will not file gains/losses on their books unless the above is met OR you won $600 or more in drawings. For example say you win $1000 poker high hand, that would trigger end of year 1099-MISC.
That is the same in Las Vegas as well @Optional.
$10k cash payout, regardless of combination risk/winnings is reported as a CTR and reported to FINCEN.Comment -
Click your state on this map and it will give you a link directly to the proposed legislation there if there is any yet.Originally posted by tbill1
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In case that win some amounts via online sportsbooks which are registered at Panama, Curacao, etc and to all money transfers are via crypto (BTC) do I need to fill report to IRS?
Citizen of California for example.Comment -
So never do an individual win bet of more than $5000 or withdraw more than 10K at a time. Seems pretty simple.Originally posted by eaglesfan371Comment -
Lol.. Any money won is taxable income.. 1 dollar or 1 million... Up to you to file at end of year.. I have had plenty of 10K plus cashes and never been audited..Tax law states if payer doesn’t omit more then 25% of income, audit window is 3 (6 years if you omit) years.. That’s why my attorney always says claim some of the winning.. That 10k cashout might be law.. but I have on multiple occasions by passed that as well.. TIPS go along wayOriginally posted by rzagza11Comment -
Legally, you have to report all income you make to the IRS if you're a US Citizen.Originally posted by euronet
When it's made internationally like an offshore sports book, it's based on the honor system. However, when you sell the Bitcoin, there's some places that will file a 1099-B no matter how much you sell, some will file if you meet a certain threshold.
If you choose not to report it to the IRS, that's on you if you want to risk getting caught/audited (some people have a larger risk tolerance than others).Comment -
Keep everything in cash. Never use exchanges.Comment
