Whether you bet big or small at this year’s Super Bowl LIII, it won’t just be you who will end up celebrating after winning. The IRS will be there waiting for their cut amid the ongoing tax season.
Apparently, the bureau that enforces income tax laws and collects federal income taxes is expecting everyone to come clean about their taxes on or before April 15. And this includes the winnings of gamblers who may have wagered on the Super Bowl at a casino, through a pool or fantasy league, or even at a simple gathering with friends.
Wolters Kluwer Tax & Accounting in Chicago principal analyst CPA Mark Luscombe told WSAZ NewsChannel 3 that even gamblers are not safe from tax season. “Any gambling winnings you receive is considered income by the IRS. You have to report it,” he said.
Gambling and betting have various unregulated channels. There are major platforms and minor platforms that cater to all types of gamblers. Even if you are just betting a small amount on the Super Bowl, any amount you win is still regarded as taxable income. Hence, you still are required to report your winnings.
According to Forbes, many were betting big on the Super Bowl over the weekend. MGM Resorts disclosed that there was a $2 million money-line bet on the Rams. On the other hand, Bookmaker William Hill reported a $1.5 million bet. The anticipated total of bets on Sunday’s game was $6 billion.
Experts advise gamblers who did bet on the Super Bowl LIII, or on any form of gambling moving forward to keep detailed records of their winnings. Records should not only include the amount and types of wager, but also the date and location of where the activity took place. These will come in handy when it’s time to present tax pro with proof during tax time.
For gamblers who want to reduce the taxes they owe the IRS, Luscombe recommends writing off gambling losses. And just like winnings, these should also come with documentation. “People don’t often think about keeping track of their losses. They just lose, walk away, and then they finally win and have no records to offset it with losses,” he said.