COLUMBUS, Ohio (WCMH) – With 2023 being the first year of legal sports betting in Ohio, it's the first time that type of gambling is coming into play for tax season.
As the popularity of sports betting has grown, so has the number of questions tax experts are getting about how it affects taxes.
“It's often a surprise to people that their winnings are taxable which is the first thing we often catch people off guard with," said Mark Steber, Chief Tax Information Officer with Jackson Hewitt.
He said based on winnings which are high enough, some bettors and the IRS will be sent W-2 G's from the betting company. Others won't receive forms but Steber said they still need to report.
“You don't have to cash out to have a reportable transaction in gaming or in crypto currency," he said. "I put this way, as I tell my sons, if you’re happy you probably have a reportable tax event.”
Taxpayers are taxed when they win, not when they accept or withdraw money, according to Steber.
“There’s no de minimis. It's not less than $600, it's not less than $10,000, if you win a dollar it's supposed to be on your tax return," he said.
Steber's had a couple recommendations for sports bettors. He said do research about this for those doing their own taxes and don't be afraid to reach out to tax professionals with questions.
“It’s a lot like a lot of things in taxes, what I owe money on that, if you’re happy odds are you probably have something you need to report," Steber said.
The deadline to file is April 15.