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How to file sport betting tax across multiple sportbooks?

I deposited 2000$ in Draftkings and bet it all and lost it all. For a loss of -2000$

I deposited 5000$ in Caesar and won 5000$. I then withdraw all 10000$ (deposit + winning).

 

I read if winnings over 600$, betting sportsbook has to send IRS a W2G. 

By my understanding, that means Draftkings will NOT send a W2G, while Caesar will send a W2G of 5000$ winning.

 

By that logic, I am on the hook for tax on 5000$ earnings, even though i placed 7000$ total (Draftking + Caesar combined), and my net win is only 3000... but I have to pay tax on 5000$? Assuming a 50% tax rate, of 2500$ my net profit after taxes will be 500$?

 

Is this correct?? Or is there a place on IRS form to enter deposits across all sportbooks?

 

How does this work? 

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3 Replies

How to file sport betting tax across multiple sportbooks?

all winnings are reported as income all losses are an itemized deduction. with sportsbooks (or even with a bookmaker)  if you placed 10 bets winning 4 the 4 are reported as income while the other 6 are reported as losses.

 

 

 

How to file sport betting tax across multiple sportbooks?

So to count my deposits I have to forgo standard deduction? As a joint filer that is a huge loss (as a W2 worker who sport bet here and there)

How to file sport betting tax across multiple sportbooks?

Yes, you will have to itemize deductions if you wish to deduct your deposits in the sport book you lost in. However, the $5,000 you deposited into Caesars, has already been deducted, because the W-2g will be for the $5,000 you won and not the $10,000 you withdrew.  If you are taking the standard deduction, you will be taxed on $5,000 as opposed to $3,000. 

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