Betting on the Super Bowl? ‘You gotta pay the piper' on your winnings, says tax expert

If you’re planning to bet on a game on Sunday, consider the implications of potential winnings. About half of your winnings may be subject to taxes, which could pose a problem if you spend it all before filing your 2024 tax return. All gambling winnings, regardless of whether you are a professional gambler, are considered taxable income by the Internal Revenue Service. Most U.S. states also impose taxes on gambling earnings. You are responsible for keeping track of your winnings and losses, even if you do not receive a W-2G tax form. It is recommended to keep accurate records and supporting documents. Gambling winnings and losses are reported separately on your tax return. You can deduct losses as an itemized deduction, but they cannot exceed the winnings you report as income. Most taxpayers do not itemize deductions, as the standard deduction usually exceeds itemized expenses. Failing to report gambling winnings is against the law and can lead to penalties or even jail time. It is important to report all income and adhere to tax regulations.