Depending on where you live, betting on your favorite teams may no longer require an account with a bookie or a plane ticket to Las Vegas. But in your zeal to play the odds, don't forget that gambling winnings are subject to federal taxes. Your state may want a piece of the action, too.
In May, the Supreme Court struck down a 1992 federal law that largely prohibited sports betting outside of Nevada casinos. New Jersey (the state that brought the suit that challenged the law) and Delaware aimed to have sports books up and running mere weeks after the court's ruling, while 20 other states have enacted legislation to kick-start the process.
Legal or not, the IRS expects gamblers to report any winnings as “other income.” The new tax law preserves the rule that allows itemizers to deduct gambling losses to the extent that they offset winnings, but because the law doubled the standard deduction, itemizing makes sense for fewer taxpayers.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Once up and running, states with regulated sports gambling will offer bettors guaranteed payouts, stable odds and peace of mind, which can be harder to come by when gambling through underground avenues, says John Maloney, a lawyer who specializes in gaming regulation.
-
The power and flexibility of 529 savings plansSPONSORED Today’s 529 plans can be used in more ways—and at more types of schools—making them one of the smartest ways to save for education.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
IRS in Turmoil: GOP Budget Cuts and Staff Shake-Ups Threaten Taxpayer ServicesIRS Republican lawmakers advance a controversial budget bill that would gut IRS funding further, risking your 2026 tax filing season.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.
-
21 Last-Minute Gifts for Grandparents Day 2025 to Give Right NowHoliday Tips Last-minute gifting is never easy. But here are some ideas to celebrate Grandparents Day.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Taxpayers Age 65-PlusTax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Claiming the Standard Deduction? Here Are 10 Tax Breaks For Middle-Class Families in 2025Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.
-
Over Age 65? New $6,000 'Senior Bonus' Deduction Is Available Even If You ItemizeTax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Stay NJ Could Give You $6,500: The Deadline You Can't MissProperty Taxes New Jersey has a new property tax relief program for 2025. The application deadline is approaching fast.
-
The Fall Garden Tax? What to Plant and How to PrepareTax Tips Fall gardening could increase your taxes this season. Here’s what to know while planting in 2025.
