Expert offers tax advice for new sports gamblers in Arizona
PHOENIX, Ariz. (3TV/CBS 5) - Sports gambling is legalized in Arizona come Thursday, Sept. 9, and a Phoenix certified public accountant has advice if you win or lose big.
“Please keep your receipts,” said Hockensmith. Those losing bet receipts can be a tax deduction for the winning bet, Hockensmith said. “And on December 31st, if you don’t win, you can throw them away.”
Right now, the federal income tax withheld from gambling winnings is 24%. You only have to report it if you win $600 or more. The payout must also be at least 300 times more than the sports bet you placed. “So if you don’t report it, bad things will happen, the government will start knocking on your door and stuff,” said Hockensmith.
The Joint Legislative Budget Committee estimates that sports betting license fees and tax rates will bring 34 million in new annual revenue.
Hockensmith said to keep a notebook if you gamble through an app and write the amount of money you pulled out of your account for gambling. At the end of the year, you sign the notebook and get it notarized. Hockensmith said that notebook becomes evidence and IRS must take it as a deduction.
Copyright 2021 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.