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How much does the IRS charge for gambling winnings?

24% If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. If you didn't give the payer your tax ID number, the withholding rate is also 24%.

hrblock.com - Gambling Winnings Tax - H&R Block
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Editor’s note: Consider this scenario: you win the Powerball and strike it rich—or so you think. But what’s the Powerball after taxes? This post shares information about your lottery payout after taxes, including taxes on casino winnings and more. Have you just won the state’s Powerball? Lucky you! While you might be excited at first, afterward you might start thinking about Powerball after taxes… Will the amount be way less? We’ll tell you now.

Gambling Taxes: 101

Here’s the truth with gambling taxes: both cash and noncash gambling winnings are fully taxable.

What Are Cash Winnings?

Cash winnings include money you received from:

Lottery payouts

Sweepstakes

Bingo

Raffles

Poker and other games

Keno

Slot machines

Casino winnings

What About Non-Cash Winnings?

Your winnings might be noncash — like a vacation or a car. If so, you must include its fair market value (FMV) when figuring your income.

Reporting Gambling Profits and Loss on Your Taxes

Gambling Losses Can Be Deducted on Schedule A.

If you itemize your deductions, you can deduct your gambling losses for the year on Schedule A. However, you can only deduct your loss up to the amount you report as gambling winnings. So, you should keep:

An accurate diary of your gambling winnings and losses

Documentation of your gambling activity that can be verified

How Winnings Are Reported to the IRS: Form W-2G

The payer must provide you with a Form W-2G if you win:

$600 or more if the amount is at least 300 times the wager (the payer has the option to reduce the winnings by the wager) $1,200 or more (not reduced by wager) in winnings from bingo or slot machines

$1,500 or more in winnings (reduced by wager) from keno

More than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament

Any winnings subject to a federal income-tax withholding requirement

If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. If you didn’t give the payer your tax ID number, the withholding rate is also 24%.

Withholding is required when the winnings, minus the bet, are:

More than $5,000 from sweepstakes, wagering pools, lotteries,

At least 300 times the amount of the bet

You should receive a copy of your Form W-2G showing the amount you won and the amount of tax withheld. Even if you don’t receive a Form W-2G, include your winnings on your return. Where to Go for Help with Powerball After Taxes or other Lotto Winnings Navigating your tax obligation after you get lucky with the Powerball or other cash or non-cash gambling endeavors can get tricky. So, get help. Use H&R Block to file your taxes. With many ways to file your taxes, including online or in-office, we can fit your needs and guarantee an accurate tax return.

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Can you get rich on sports betting?

Sports betting is unlikely to make you rich unless you turn it into a full-time job and become one of the best bettors in the world. That's an extreme statement and before getting rich, it's important to remember that only a small percentage of sports bettors are simply profitable.

rotowire.com - Can sports betting make you rich? - RotoWire.com

Can sports betting make you rich?

Sports betting is unlikely to make you rich unless you turn it into a full-time job and become one of the best bettors in the world. That's an extreme statement and before getting rich, it's important to remember that only a small percentage of sports bettors are simply profitable. If you want to make sports betting a career, you need to first follow some of the basic ideas.

Set a bankroll

Study

Shop Odds

Don't trust others

Gradually Grow Your Bankroll

If you can turn a profit after a certain amount of time, the next step is to gradually grow your bankroll. If you continue to have success betting on sports, it's not going to be a one bet and you're done kind of thing. It's important to abide by the unit rule and limit wagers from one to five units per bet. Just because you really like one matchup doesn't mean you should put all of your money into it. Successful bettors steadily grow their bankrolls and don't fall into the trap of becoming overconfident. While you can become a full-time sports bettor, getting "rich" is another story and one that's unlikely to happen no matter how successful you become. To turn a positive, you have to hit more than 52.4% of your bets, though that depends on what kind of odds you're getting. It may be possible to hit more than 60% for a season, but doing that consistently, year-after-year, is another question.

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