CHARLOTTE, N.C. — Sports betting and gambling losses can be deducted on annual tax filings. However, there are rules so that those deductions pass muster with the IRS.
According to the IRS, winnings from any gambling are taxable. Anyone who wins more than $600 will receive a form to fill out to report their winnings with the IRS, Mark Steber, a tax information officer with Jackson Hewitt Tax Services, previously told WCNC's Verify team.
This isn't limited to sports betting. If you go to a casino and win big playing slot machines or table games, anything over $600 must be reported.
"If you win more than $600, you're going to get a W-2 with the amount you won and where you won," Steber explained. "If you win $5,000 or more, the government will take 24% upfront and then you certainly have to pay for that."
According to TurboTax, you can deduct your gambling losses but only if they're used to offset income from your wins. You can't simply deduct losses without reporting your winnings. The dollar amount of losses you're allowed to deduct can never exceed reported winnings.
Anyone reporting gambling losses to the IRS must itemize income tax deductions on a Schedule A form. Also, the IRS doesn't allow people to subtract their losses from winnings and only report the difference on their tax returns.
"Overall, if you have winnings, you can deduct the same day, the same type of loss that you have winnings, but not a net loss and not all different types of bets," Steber said.
If you are concerned about your gambling or worried about a friend, you can call the NC Problem Gambling Helpline at 1-877-718-5543. You can also contact the National Helpline at 1-800-522-4700.
WCNC's Meghan Bragg contributed to this report. You can contact Meghan at mbragg@wcnc.com and follow her on Facebook, X and Instagram.