Sports Betting Winnings: What to Do at Tax Time

What your winning bet means for your taxes

Key takeaways

Sports betting winnings are taxable income, even if you don’t get a tax form.

Some wins may trigger a form W-2G, but you still have to report all gambling income.

Gambling winnings are taxed as ordinary income, added to your other earnings for the year.

My favorite football team didn’t even make the playoffs, so when I placed a longshot parlay during the Big Game, it was mostly just to make things interesting.

Things got interesting fast: I won, and it was more than I’d ever made on a single bet before.

After the excitement wore off, one question hit me: Did I need to report that money on my taxes?

If you’ve ever had that same question after a winning bet, here’s what to know.

Your winnings are considered income

The IRS considers gambling winnings to be taxable income. Whether you win through a sports betting app, at a casino, on a scratch-off ticket, or somewhere else, that money generally needs to be reported on your tax return. Whether it’s $5 or $5,000, winnings count as taxable income.

Depending on the size and type of your win, you may receive Form W-2G. For some gambling winnings, this form is issued when the payout meets IRS reporting thresholds. In some cases, federal taxes may also be withheld from larger winnings.

Even if you don’t get a W-2G form, you’re still responsible for reporting all gambling income. 

How your gambling winnings are taxed

Gambling winnings are generally taxed as ordinary income. That means they’re added to your other income for the year, such as wages, self-employment income, or investment income.

If you itemize your deductions, you may be able to deduct gambling losses up to the amount of your winnings. But you can’t deduct more in losses than you won, and you’ll need records to support your claim.

Report your winnings confidently when you file

It may sound complicated at first, but the basics are simple: report your winnings, keep good records, and understand when losses may be deductible.

Tools like TurboTax can help guide you through reporting gambling income and losses step by step when you file.

Betting regularly? Here’s how to report gambling winnings and losses the right way.