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The Berman Buzz

Tax Tip Tuesday: Super Bowl Sunday is Super Gambling Day – Taxes?

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Would you believe more than one in every four American adults is rolling the dice and placing bets on Sunday’s Super Bowl? Betting enthusiasts will wager an eye-popping $35 billion on the game, another increase from last year that signals another winning hand for a robust economy (and perhaps a little inflation thrown in for good measure).


So, what are the tax implications if you strike it big? 


If you place your bets through a legal outlet, you will likely receive Form 1099-G (with the 'G' for gambling). However, if you are placing wagers through your greedy father-in-law‘s favorite backroom bookie, the odds are that you will not receive a Form 1099-G. In such cases, let your conscience be your guide. But remember, winnings from gambling are fair game (or maybe unfair game), as the IRS considers your winnings taxable income.


If you are a casual gambler, like your cigar-toting father-in-law, you can deduct gambling losses up to the amount of your gambling winnings – but only if you itemize your deductions.


As for the gambling pros who hustle for their "bread and butter" on the betting scene, they can deduct all ordinary and necessary business deductions. But watch out, as the IRS scrutinizes these deductions closely.


So, ante up and enjoy the game with 75 percent of American adults in on the action. May luck be on your side with all your bets, however big or small! And here is a tip: as of the latest update, the Chiefs are holding the winning hand by 1.5 to 2 points, with the over-and-under set at 49 points.

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