Hi everyone,
So this year I have won 40k and lost 46k. I have triggered no W2-Gs and all of my bets were relatively small, no stakes over $200 and no wild payouts. I’ve quit gambling after realizing that I need to before this 6k turns into something that will actually derail my finances substantially.
I do however have some questions about taxes.
I know that I have to report this income legally and will, however am curious about the frequency of non-reporting. I know that most casual betters don’t report income. If someone doesn’t trigger any W2-Gs at 40k volume how likely would IRS action be for failing to report?
Sports Betting Non-Reporting Question
byu/Advanced-Upstairs-71 intax
Posted by Advanced-Upstairs-71
7 Comments
You had 40k win volume only because you also had 46k loss volume. That’s why
Keep in mind starting in 2026 you only get to deduct 90% of your losses
You would be better off asking this question in a sports betting sub where there will be people who have done it.
> If someone doesn’t trigger any W2-Gs at 40k volume how likely would IRS action be for failing to report?
No real way of knowing. You need to file an accurate return, though; don’t commit tax fraud.
Frequency of non reporting? 99.999% under the mandatory reportable (W2-G) amount.
That minimum is $2,000. The IRS doesn’t care about $1,000 in taxes.
Casinos are a different story. There are a few different data streams the IRS gets from them beyond the W2-G.
Not tax professional. Not a lawyer.
The odds are very low.
I am a much heavier gambler and regularly generate w-2Gs (2025 I had w2gs from 4 states lol) and generally have losses to offset. The biggest downside is you have itemize if you claim the net 0. For me it doesn’t matter, I itemize anyway. But for some it would matter losing the standard deduction.
IRS doesn’t know about it unless you get you get a W2-G. Unless you’re audited they will likely not know about the income