Especially in Illinois, on the state portion, where you cannot deduct losses from wins, say if someone has lost $3k on the year overall, but they have $9k in “winnings” ($12k spent, $9k won), do those people really report that on their state taxes and pay the tax on that, on top of losing money overall in sports betting? How often is it that people are unaware or just straight up choose to ignore all of this?
How many people are actually reporting their sports betting winnings?
byu/RedOneHitter intax
Posted by RedOneHitter
2 Comments
Probably less than .1% in my opinion.
Not as many as you’d think… I imagine there is going to be a bigger crackdown in this area in the coming years. It is always the taxpayers responsibility to report the income and a professional will ask if they have said income. But, I’m not sure if most of those sites (maybe besides FanDuel and Draft Kings) will generate or issue a W2G or 1099MISC which is why it goes unreported most of the time.