Winnings on super bowl taxable. If you won money on the Super Bowl, remember that the earnings are taxable. We have run into virtually every reason why people have fallen behind on taxes. Some good, some bad. Gambling winnings and losses are something we are quite familiar with, and we understand that often individuals who win a jackpot forget to take out taxes, then down the road find themselves with a tax problem. Its best to talk to a tax professional about the consequences of gambling winnings before you rush off to spend the money, making sure you don’t spend what should be paid in taxes.
No matter where you wager–whether at a casino, through a pool or fantasy league, or at your annual bash–the IRS expects you to come clean each year at tax time. “Any gambling winnings you receive is considered income by the IRS,” said CPA Mark Luscombe, principal of Walters, Kluwer Tax Accounting in Chicago. “You have to report it.” Roughly 22.7 million Americans are expected to wager an aggregate $6 billion on the Super Bowl, according to a recent survey from the American Gaming Association. Of those bettors, 1.8 million plan to bet illegally, through a bookie, and others are expected to place wagers through online offshore accounts.
And of course, there are a ton of other unregulated bets that happen beyond those channels. And while you might be less likely to tell the IRS about smaller amounts you win, just be aware that is is considered taxable income. For casual gamblers placing wagers through regulated sports betting in states that allow it, the IRS makes it a bit easier for you by placing reporting requirements on the payor, the casino, as well. A handful of states have legalized sports betting since last may, when the U.S. Supreme Court struck down a 1992 federal law banning it, and more than two dozen others are considering the move, according to the gaming group. Just remember, winnings on super bowl taxable.