Sport is a preserver of health, our loyal companion, and the only thing that keeps most of us alive. However, not everyone associates sport with the active life. Why? Because there are those who are obsessed with the game, and not the physical appearance of the sport. These people are called sport bettors, and they know sport better than anyone else! They analyze the game, and do their predictions based on the knowledge and information that they have. They do it with passion and enthusiasm, because that’s what they’re good at, that’s what makes them true bettors!
When passion and work combine, incredible things happen; and yes, you’re not mistaken, sport betting is a job. What’s more interesting, you should pay taxes when winning a bet! Let’s make it clear: you’re the employee, and you’re getting paid for the work that you do. If you’re placing bets, and doing it good, you will win a considerable amount of money. This in turn is considered as your income, and you should pay taxes from the income you get. The formula is simple, just take a look:
Gambling = Work
The Money You Won = The Salary You Receive
Tax = Tax
It’s as easy as ABC. Your betting is your income, and if you win, you should pay taxes. All the organizations where you conduct your betting activities should give you a Form W2-G if the amount of money is relatively high.
Most bettors prefer joining Fantasy Football Leagues in order to bet and win. The Internal Revenue Service always considers your winnings as a taxable income. It’s important to know, unless you want to get surprised when receiving the final winning! If you win higher than $600, you’ll be expected to give your social security number.
Same happens when you start your gambling activities on online sport platforms. If you win $600 or higher, you’ll be obviously taxed, and that’s completely normal. Betting is your work, and the winning is your salary, remember? If you win on online sport sites, you and the IRS, of course, will be given a tax form.
But what if you don’t receive the form? Should you just ignore it, and take your winnings with you? Of course not! This form is essential for you to see the bigger picture of the amount of money you should report on taxes; but still, sometimes you may not receive it. In such cases, you should report it on your federal and state income tax returns. Nothing can be conducted without the IRS, everyone knows that!
Now that you know what awaits you in case you win, go and place your bets! Even though gambling can cause addiction and obsessions, you should work on you to never cross the line! If you do everything in the proper limit, you will not only have fun, but also make some money. It’s always better to know that the money you get is legitimate, and that you put all your efforts to get what you truly deserve!