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.
-
Cord Cutting Could Help You Save Over $10,000 in 10 YearsHow cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement RuleThe '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'Tax Deductions The latest GOP tax bill might make hidden homeowner costs worse for you. Here’s how.
-
Retire in the Bahamas With These Three Tax BenefitsRetirement Taxes Retirement in the Bahamas may be worth considering for high-net-worth individuals who hate paying taxes on income and capital gains.
-
2025 Virginia Tax Rebate Checks Coming Soon? What to Know NowTax Rebates Given a historic 2025 gubernatorial race, tax policy will remain a key issue for Virginians in the months ahead.
-
Summer Backyard Ideas With Added Tax Benefits for 2025Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.
-
Coverdell ESAs vs. 529 Plans: Which Should You Choose?Savings Accounts These savings accounts can offer tax benefits for school and retirement expenses. Here’s how.
-
Homeschoolers Could Soon Save on Expenses With 529 PlansSavings Accounts A new House GOP bill could change how you save for your child's homeschool education. Find out how.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the SenateTax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers QualifyTax Breaks To fulfill Trump's campaign promise, GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
