As known from:
The SunFootball365Sportskeeda
Alerts
Latest Deals
Write a Review
Write a Review
Nothing Found
About betting.net
  • Betting.net on YouTube
  • About betting.net
  • The betting.net Crew
  • How We Rate
  • Play Responsibly
  • Contact us
  • Writers Wanted
  • Content Disclaimer
  • Affiliate Disclosure
Contains commercial content
Alerts
Latest Deals
Write a Review
Write a Review
Nothing Found
About betting.net
  • Betting.net on YouTube
  • About betting.net
  • The betting.net Crew
  • How We Rate
  • Play Responsibly
  • Contact us
  • Writers Wanted
  • Content Disclaimer
  • Affiliate Disclosure
Betting.net / How to tax your sports betting winnings in New York 2022

How to tax your sports betting winnings in New York 2022

Publish Date: January 14, 2022
Fact checked by: Jesse M Cox

Sports betting is now legal in New York, and that opens up a whole new world of possibilities. You have some great platforms to bet with, like FanDuel and BetMGM, and the opportunity to enhance your betting experience.

Gambling taxes in New York

But, with everything you win in life, you have a legal obligation to pay tax on your winnings as soon as you sign up with a sportsbook.

Taxing gambling winnings often fall into a bracket of its own, and so you have to take certain measures to separate your gambling winnings from your regular income and household tax. But, there are many new questions about tax rates in New York. How much of my winnings will be taxed? When do I have to pay for it?

It depends on your annual income. The state tax can range from anywhere between 4% to 8.82%. If you live in New York City, you’ll also have to pay an additional 3.786% in tax. But, just know that 4% will be your minimum tax rate. However, take heart, as a sportsbook operator, like Resorts World NY, you’d be paying 51% tax on your profit!

So, to separate these from your regular taxes, you need to get a hold of a form called a W-2G. The IRS will automatically issue you this form if they have records of you gaining gambling winnings, and it essentially acts as a record for your gambling winnings. Once you fill out your W-2G, it should estimate how much tax you’ll have to pay on your gambling winnings.

How much tax will I be paying on my gambling winnings?

The W-2G will ask you how many gambling winnings you earned, but the primary deciding factor will be your annual income. Depending on how much you make a year, that will decide the percentage of your gambling taxes. If you make anything under $8,500, for example, you will be taxed a minimum of 4%.

But, if you make anywhere in the range of $21,401-$80,650, which is a wide ballpark for the majority of your average working person,  you’ll have to pay 6.09%. You’d have to make over $1,077,550 to pay the maximum tax rate of 8.82%.

But, you may be asking, what is the bar for gambling winnings being taxed? Don’t worry, if sign up with WynnBet New York and you win $50 on an NFL game over the weekend, we highly doubt you’d have to pay tax on that. There is a threshold that has to be met before you will start being taxed on your gambling winnings.

For most sports betting activities, if you make $600 or more in a calendar year, you’ll be subject to paying tax on that. If you win a prize or a bonus, like a trip, a car, or any kind of prize, the fair market value should be reported on the W-2G.

If you’re betting outside of New York also, in New Jersey, there is a return you’ll have to submit to tax your winnings. If any out-of-state gambling winnings exceed $5,000, you’ll have to file a non-residential return reporting your winnings.

Read Also
Draftkings And Fanduel Battle For Control On NY Sports Betting Market
The battle between DraftKings and FanDuel for supremacy in the New York ...
New York Becomes First State to Hit $1 Billion in Sports Betting Tax Revenues
The Empire State has recently created history by becoming the first state ...
BetMGM Promo
Is BetMGM sports legal in Louisiana?
Now that sports betting is finally fully legal in Louisiana, many sports ...
Is FanDuel Sportsbook legal in New York City?
Every avid sports betting fan in the Empire State has been waiting ...
Which sportsbooks are legal in New York 2022?
New Yorkers can finally rejoice. Sports betting in New York is legal! ...
Sportsbook of the month
DraftKings - Get your Bonus Bet now! Get your Bonus Bet now!
Latest News
Nevada Casinos kick off 2024 with record-breaking start
The gaming industry in Nevada started 2024 with ...
North Carolina Gubernatorial Candidates: their stances on casinos
As the North Carolina gubernatorial race heats up, ...
Gates of Bitcasino grants a max win, worth $2.5 million
A lucky player won $2.5 million on Gates ...
Thunderkick partners with Betway, strengthening foothold in UK
Independent slot developer Thunderkick signed a partnership deal ...
Delaware Park re-opens with new Vegas glamor after $10M upgrade
The Delaware Park Casino recently unveiled its upgraded ...
Top Betting Sites
Top Betting Bonuses
Bet365
Bet365
Bet365 Review
4.7/5
BetMGM
BetMGM
BetMGM Review
4.7/5
FanDuel
FanDuel
FanDuel Review
4.6/5
Caesars
Caesars
Caesars Review
4.5/5
DraftKings
DraftKings
DraftKings Review
4.5/5
Bet365
Bet365 Bonus
First Bet Safety Net up to $1000 OR Bet $5 and Get $150
T&Cs apply
4.7/5
At bet365 we don't do ordinary, that's why if you sign up now you'll get the choice of two great New Customer Offers, the First Bet Safety Net up to $1000 or Bet $5 and Get $150 in Bonus Bets. Deposit required. Bonus Bets wager excluded from returns. T&Cs, time limits and exclusions apply. Gambling Problem? Call 1-800-Gambler 21+
BetMGM
BetMGM Bonus
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
T&Cs apply
4.7/5
FanDuel
FanDuel Bonus
Bet $5 Get $200 in Bonus Bets if your bet wins
T&Cs apply
4.6/5
Caesars
Caesars Bonus
100% up to $1000
T&Cs apply
4.5/5
DraftKings
DraftKings Bonus
Bet $5, Get $150 in Bonus Bets Instantly
T&Cs apply
4.5/5
Get the latest updates in Sports and Casino via our Newsletter
Poker & Bingo

Full coverage of poker and bingo, from reviews of providers to guides and much more besides!

21+ and present in VA. Gambling Problem? Call 1-800-GAMBLER.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

Close
Players accepted in the US US Flag
Stake.us Exclusive Bonus
$55 Stake Cash + 260K Gold Coins + 5% Rakeback
Promo Code
Copy
Visit Site
T&Cs apply, 18+
Payment Methods
Bitcoin
Litecoin
Ethereum
Dogecoin
Highlights
  • Exclusive promo code: BETCRYPTO
  • Drake loves this social casino!
  • Play for free with Gold Coins!
Stake Originals
Dice
Crash
Plinko
Mines
×
Your Bonus Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site