You may need to provide documentation of your losses if your tax return is audited. It is especially important to keep records if you are deducting sports betting losses on your tax return. It is best practice to keep records of all your sports betting activity. Whether you are playing in a fantasy sports league or placing bets on sports games, winnings are taxed the same way. Essentially, the winnings are taxed at the same rate that additional wages would have been taxed. The tax rate that you pay on your sports betting winnings may vary from 0% to 37% depending on the amount of other income that you have, your filing status, and several other factors on your tax return. Sports betting winnings are taxable income, which means they are taxed like other ordinary income on your tax return.
Am I required to pay taxes on my sports betting winnings?
