They still have deductions whether they itemize or not. No difference than getting a raise so I’m confused on what your issue is.
Sports Betting Arbitrage - Taxes
- Thread starter Cyclonefan710
- Start date
In your example of betting both sides of a contest on two different sites to take advantage of differences in lines how would bets on two different sites be considered one single session?
If over $600 in winnings, you will receive a 1099-G with the gross total.
Losses, up to the amount of the winnings, CAN be deducted on the Schedule A, itemized deductions.
The 2018 eliminated the vast majority of taxpayers who itemize deductions on a Schedule A. The 1099-G's are miscellaneous income. Good luck.
Losses, up to the amount of the winnings, CAN be deducted on the Schedule A, itemized deductions.
The 2018 eliminated the vast majority of taxpayers who itemize deductions on a Schedule A. The 1099-G's are miscellaneous income. Good luck.
As of last tax season some states would allow taxpayers to take the standard deduction on their Federal return and still itemize on their state. I have no idea if that will be true for 2020 returns.
If you're raking in $6k in winnings, hire @isufbcurt to tell you the answer
Iowa allows itemization while filing a standard deduction Fed.
BIG ALSO,....the economic impact payments are not taxable income, they were refundable income tax credits. Our software defaults to $0 additional credit received, all to be additional tax refund.
If you received ANYTHING, the credit must be reduced, probably down to $0, on the 2020 1040.
BIG ALSO,....the economic impact payments are not taxable income, they were refundable income tax credits. Our software defaults to $0 additional credit received, all to be additional tax refund.
If you received ANYTHING, the credit must be reduced, probably down to $0, on the 2020 1040.
Oh I’m well over it but we probably only have around 10k to itemize without the gambling. So around $15k of the gambling deduction I would have gotten with the std deduction. It’s $3,600 extra in taxes. It blows
This post is in my wheelhouse: I’m a CPA (albeit one who does not work in the tax field) and sports bettor. Few things:
1. Others have said it but I will reiterate in the OP’s example, you’d have to report $110 as other income and if you itemize, you could report the $100 loss and have a net impact of $10 to your taxable income. If you cannot itemize, it would be a $110 impact to taxable income. Make sure you where you are going to file before you start to arbitrage.
2. For those curious about arbitrage and saying they have never seen these opportunities, trust me they are out there. You can find arbs every single day if you have accounts at multiple books. They are generally on prop bets and other more obscure wagering lines, it is uncommon to find them on traditional money line bets. With that said, books are becoming quicker to ban people who are consistently making large dollar wagers on these obscure bets. I know several friends who successfully did this for a while but have since been banned or limited down to a dollar amount where they can’t really do much. Have to be careful or else you won’t get to bet on anything let alone the arbs you may be trying to hit.
3. I saw some reference arbing boosts and promos at books and math says generally you are losing value by doing that (assuming it’s a good boost since they regularly post duds that are actually just regular odds). Sure, you guarantee a profit, but if you look at the expected value (probably of event occurring * odds), over time you would make more just betting the boost straight up and letting it go.
4. If you are curious about whether or not you may or may not have found value in a wager, I’d recommend using Pinnacle as a resource. That is a foreign book that takes a lot more action than the US books and because of this, has more accurate odds. This is helpful when figuring out if the aforementioned boosts are actually worth playing or not.
Best of luck to my fellow gamblers out there. Hope you profited from the mispriced ISU lines last night like I did.
1. Others have said it but I will reiterate in the OP’s example, you’d have to report $110 as other income and if you itemize, you could report the $100 loss and have a net impact of $10 to your taxable income. If you cannot itemize, it would be a $110 impact to taxable income. Make sure you where you are going to file before you start to arbitrage.
2. For those curious about arbitrage and saying they have never seen these opportunities, trust me they are out there. You can find arbs every single day if you have accounts at multiple books. They are generally on prop bets and other more obscure wagering lines, it is uncommon to find them on traditional money line bets. With that said, books are becoming quicker to ban people who are consistently making large dollar wagers on these obscure bets. I know several friends who successfully did this for a while but have since been banned or limited down to a dollar amount where they can’t really do much. Have to be careful or else you won’t get to bet on anything let alone the arbs you may be trying to hit.
3. I saw some reference arbing boosts and promos at books and math says generally you are losing value by doing that (assuming it’s a good boost since they regularly post duds that are actually just regular odds). Sure, you guarantee a profit, but if you look at the expected value (probably of event occurring * odds), over time you would make more just betting the boost straight up and letting it go.
4. If you are curious about whether or not you may or may not have found value in a wager, I’d recommend using Pinnacle as a resource. That is a foreign book that takes a lot more action than the US books and because of this, has more accurate odds. This is helpful when figuring out if the aforementioned boosts are actually worth playing or not.
Best of luck to my fellow gamblers out there. Hope you profited from the mispriced ISU lines last night like I did.
To just talk differences and hopefully avoid politics, you also understand that the tax brackets went down and actually added more, right? Besides the fact that if you itemized then, you may still be able to now? There were a few things I noticed were added and my itemization went up with the new rules.
Also, are you gambling for profit? If so, then you can probably make a business out of it (not sure what the limitations are). If you are doing it for fun, then do it for fun and not get wound up about a few dollars here or there.
A scenario where the OP could potentially get +110 on both sides:
- OP bets side A of a football game on Monday at +110
- Line moves a couple points from +1 to -1 for side A
-OP bets side B of the game on Friday at +110
- OP bets side A of a football game on Monday at +110
- Line moves a couple points from +1 to -1 for side A
-OP bets side B of the game on Friday at +110
It's pretty simple, whatever you won, offset that amount as what you lost. You can deduct gambling losses to the extent of winnings.
I have a couple retired clients who gamble a lot. They regularly win close to $200,00 and we offset that win a $200,000 loss.
And unless you are getting a W2G I wouldn't even mess with reporting it.
Note: I didn't read the entire thread just saw that I was tagged in it and read a few post.
I have a couple retired clients who gamble a lot. They regularly win close to $200,00 and we offset that win a $200,000 loss.
And unless you are getting a W2G I wouldn't even mess with reporting it.
Note: I didn't read the entire thread just saw that I was tagged in it and read a few post.
I never stated that it was.
My intent was for it to be.
Regardless, I think a discussion on semantics is unnecessary here.
The thread title was arbitrage, what you posted isn't. Just pointing that out. Its fine.
Another thought on this. So are taxes based on actual winnings, or on withdrawals? Normal gambling winnings would be done as you cashed out, they don't figure taxes based on each poker hand. So if money were kept in the sportsbook, does that constitute reportable income?
Virtual casinos are a controversial phenomenon, as legislation restricts gaming zones for gambling. But despite this, the winnings obtained in this way are also taxed at 13%. Therefore, gamers playing online casinos must include this type of income in their tax return. In this case, you can confirm your income with bank statements about crediting or withdrawing money. Since I plan to purchase sportsbook software and open my brand in the future, I am carefully studying this issue. I want everything to be legally correct. By the way, do you know a good lawyer in tax law?
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Back in the 70's I knew a guy that won a substantial amount at the track. (like $20K)
He went back to the track every week to collect losing tickets so he could deduct the loses to offset the win.
If you have the time, you can make it a part time job since you are saving yourself money.
