Do I really need to report my one-time gambling win?

General
1

I won $3,000 on a sports betting app earlier this year during the Super Bowl. I’m not a regular gambler, and it was just a random bet. Now I’m wondering if I need to report this on my taxes.

I’ve seen conflicting information—some say occasional gambling wins don’t need to be reported, while others say all winnings are taxable. I don’t want to mess this up and get into trouble later.

For context, I live in the US and work as a W-2 employee with no side income. Can anyone clarify? Do I have to report it, and if so, where does it go on my return?

2

All gambling winnings are taxable. If it’s big enough, the app might send you a W-2G form to report it to both you and the IRS.

3

Zhi said:
All gambling winnings are taxable. If it’s big enough, the app might send you a W-2G form to report it to both you and the IRS.

A W-2G is only sent if the winnings are $600 or more and 300 times the wager. If OP bet more than $10 on that $3,000 win, they might not get a W-2G.

4

@Quillan
Actually, W-2Gs are issued for winnings over $600 OR if they’re 300 times the wager. I’ve gotten one before, even without crazy odds, because the total for the day exceeded $600.

5

@Quillan
Correct, it depends on the wager size and the win.

6

Yes, you need to report your $3,000 gambling win. The IRS considers all gambling winnings taxable income. You can read more here: https://www.irs.gov/taxtopics/tc419.

7

Anyone saying this isn’t taxable is either misinformed or suggesting you risk not reporting it.

8

Income is income. Gambling winnings are taxable, and your taxable amount is the payout minus the wager. For example, if you won $3,000 on a $100 bet, your taxable winnings would be $2,900.

9

Cassidy said:
Income is income. Gambling winnings are taxable, and your taxable amount is the payout minus the wager. For example, if you won $3,000 on a $100 bet, your taxable winnings would be $2,900.

What if you lost $2,900 throughout the year? Does that mean the taxable income is $0?

10

@Leith
Not unless you’re itemizing. You can’t just subtract losses from winnings unless you’re filing itemized deductions.

11

If you don’t report it, the IRS might still find out if the app sends them a notice. It’s safer to report it.

12

The idea that one-time gambling wins aren’t taxable is a myth. All winnings are considered income.

13

Think about it this way: If someone wins the lottery once, do you think they don’t have to report it? The rules are the same for any amount won.

14

The app probably already reported your win to the IRS.

15

Yes, you need to report it. Income is income, no matter how it’s earned.

16

I wonder how many people actually report small gambling wins, like $10 scratch-offs.