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.
Sign up for Kiplinger’s Free E-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.
-
Texas Sales Tax-Free Weekend 2025Tax Holiday What you need to know about the Texas sales tax holiday.
-
Four Tax Changes Older Adults and Retirees Should Watch in 2025Tax Changes This year brings key tax changes that could affect your retirement taxes and income.
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ PocketsTax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's FinancesTax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Why Your Summer Budget Feels Tighter: Tariffs Push Up InflationTariffs Your summer holiday just got more expensive, and tariffs are partially to blame, economists say.
-
Alabama Tax-Free Weekend 2025Tax Holiday Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
