Did You Bet on the Super Bowl? Don’t Forget About Taxes – Kiplinger’s Personal Finance

The Kansas City Chiefs, for the second consecutive time, have won the Super Bowl. The Chiefs defeated the San Francisco 49ers 25-22, in overtime. As usual, fans are talking about the commercials, Usher's halftime show, and Taylor Swift.

However, if you are among the 68 million people who were expected to bet on the big game, you need to know that taxes are part of the equation. So, since tax season, has started, heres what you need to know about what your Super Bowl bet has to do with your tax return.

The American Gaming Association reported that nearly 70 million people would bet on Super Bowl LVIII, waging over $23 billion. According to the AGA, that would be up from$16 billion spent during last years game.

Be a smarter, better informed investor.

Save up to 74%

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

As the Super Bowl comes to Las Vegas for the first time, this years record interest in wagering marks a full circle moment for the U.S. gaming industry, AGA President and CEO Bill Miller said in a release about this years event.

Legal sports betting, including online betting, has expanded across the United States in the last few years. Thats mainly because of a 2018 U.S. Supreme Court decision that allowed states to decide whether to legalize sports betting.

Now, the District of Columbia and most states allow some form of online sports betting, while another nine states only allow retail sports betting. Sports betting is illegal in Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Missouri, Oklahoma, South Carolina, Texas, and Utah.

If you are one of the millions who placed a bet this year, you need to know that the IRS considers sports betting to be gambling. And income from gambling winnings is taxable.

It doesnt matter if those winnings come from sports betting online, from the casino, or as a result of a big Powerball lottery jackpot win. The IRS expects you to report your winnings on your federal income tax return.

Gambling losses are generally deductible on your federal income tax return, but only to the extent of your winnings and if you itemize deductions. If you take the standard deduction, which most taxpayers do, you cant deduct your gambling losses.

In any case, keep good records. If you itemize, you should be able to show the IRS the amounts of your gambling winnings, your losses, dates, places, and payers associated with that gambling.

Remember that, like the federal government, most states tax income (including gambling winnings), although some states don't allow deductions for gambling losses. If you're unsure how to report gambling winnings and losses from the state you reside in, or from a different state, check with a tax professional when it's time to file your taxes.

By the way, youll report your winnings (or claim your losses) from Super Bow 2024 on the returns you file in early 2025.

More:

Did You Bet on the Super Bowl? Don't Forget About Taxes - Kiplinger's Personal Finance