Hey all! I have been reading through articles regarding federal/state level taxes on sports betting winnings and I need someone to explain it to me like I'm 5.
I understand that you could itemize losses up to winnings but not more than the winnings (federal level). Illinois does not allow itemization based on what I've read so far.
What I find confusing is what I am being taxed on. Am I being taxed on gross winnings across all sportsbooks? Gross profits across all sportsbooks? Gross profit per sportsbooks? Gross winnings per sportsbook?
If someone on Reddit could somehow break down what taxes would be on the below scenario (numerical values and sportsbooks mentioned solely for example), I would greatly appreciate it.
DraftKings winnings: $2,000,000 / DraftKings net profit/loss: +100k
Fanduel winnings: $500,000 / Fanduel net profit/loss: -10k
How much am I going to be taxed on sports betting in Illinois? Substantial profit
byu/dlimanowka intax
Posted by dlimanowka