Re: Help me out with the new wagering IRS rules (361 Views)
Posted by: Silver Charm (IP Logged)
Date: October 04, 2025 10:49AM
Well said in that first sentence. For the sake of brevity, I wasn't specific enough.
And yes, in that last paragraph, if someone has a $5K Signer today but won $6K gross. Only the $5K gets reported and the payor withholds 28%. So once you have $5K in losses only $4.5k (90%) of losses would be allowed so thats $500 taxable income net. If you want to report the other $1,000 well that up to you.
Gambling winnings for things like large Parlays are reported.
For sports betting, including parlays, the provider is required to issue you a Form W-2G if your winnings are $600 or more and the payout is at least 300 times your wager.
However, even if your win does not meet this threshold and you do not receive a form, you are still legally obligated to report the income.
Other forms of gambling are now legal and more popular. Horse racing was not being singled out. Hopefully that's clear and if not its not taken personally. Straighten me out
And yes, in that last paragraph, if someone has a $5K Signer today but won $6K gross. Only the $5K gets reported and the payor withholds 28%. So once you have $5K in losses only $4.5k (90%) of losses would be allowed so thats $500 taxable income net. If you want to report the other $1,000 well that up to you.
Gambling winnings for things like large Parlays are reported.
For sports betting, including parlays, the provider is required to issue you a Form W-2G if your winnings are $600 or more and the payout is at least 300 times your wager.
However, even if your win does not meet this threshold and you do not receive a form, you are still legally obligated to report the income.
Other forms of gambling are now legal and more popular. Horse racing was not being singled out. Hopefully that's clear and if not its not taken personally. Straighten me out
Sorry, only registered users may post in this forum.