You’re probably not thinking about the IRS at Super Bowl kickoff time. But if you’re making a bet on the big game, you could get hit with an unexpected tax bill, depending on whether the Seahawks or the Patriots take home the trophy.
Before you put money on the Super Bowl, make sure you understand how sports betting taxes work and how to report your gambling income. Then, you can return your focus to cheering for your team and enjoying all those Super Bowl snacks.
Winnings from Super Bowl bets (or any type of sports gambling) are taxable as ordinary income at the federal level. If you win money on your bet, you’ll be taxed at a rate of 10% to 37%, depending on your tax bracket.
Your winnings are fully taxable even…