Question 1

How are sports betting winnings taxed?

Accepted Answer

All sports betting winnings are taxable income. The IRS requires you to report every dollar won, regardless of whether you receive a W-2G. Winnings are taxed at your ordinary income tax rate at the federal level, and most states with legal sports betting also tax winnings at their own rate.

Question 2

What changed about sports betting taxes in 2026?

Accepted Answer

The Online Betting and Bingo Business Adjustment Act (OBBBA) introduced a 90% cap on gambling loss deductions starting in 2026. Previously, itemizers could deduct losses up to the full amount of their winnings. Now, you can only deduct up to 90% of your winnings — meaning at least 10% of your gross winnings are always taxable.

Question 3

What is the difference between standard and itemized deductions for bettors?

Accepted Answer

With the standard deduction ($15,000 single / $30,000 married filing jointly in 2026), you cannot deduct gambling losses at all — your full gross winnings are added to taxable income. With itemized deductions, you can deduct gambling losses up to 90% of your winnings (the new OBBBA cap), but only if your total itemized deductions exceed the standard deduction amount.

Question 4

Can I owe taxes even if I lost money betting overall?

Accepted Answer

Yes. If you take the standard deduction, your gross winnings are fully taxable regardless of your losses. Even if you itemize, the 90% loss cap means you may owe taxes on at least 10% of your winnings. And at the state level, many states do not allow loss deductions at all — so your full winnings may be taxable in your state even if you had a net losing year.

Question 5

Do I need to report small winnings?

Accepted Answer

Yes. There is no minimum threshold for reporting sports betting income. Whether you won $50 or $50,000, the IRS expects you to report it. Sportsbooks issue W-2G forms for winnings over $600 at 300:1 odds or greater, but you are legally required to report all winnings regardless of whether you receive a form.

Question 6

How does Layup help with taxes?

Accepted Answer

Layup connects to your sportsbooks and automatically tracks every bet, win, and loss across all your accounts. At tax time, you have a complete P&L — broken down by sportsbook, sport, and time period. No more digging through bet histories or guessing at your numbers.

Question 7

What sportsbooks does Layup support?

Accepted Answer

Layup connects to DraftKings, FanDuel, BetMGM, Caesars, ESPN BET, Fanatics, and 20+ other legal sportsbooks. One connection syncs your full betting history — wins, losses, and pending bets — automatically.

Question 8

How accurate is this calculator?

Accepted Answer

This calculator provides estimates based on 2026 federal tax brackets, state tax rates, and the OBBBA 90% loss deduction cap. It is designed for educational purposes and does not constitute tax advice. Your actual tax liability depends on your full financial picture — consult a qualified tax professional for personalized guidance.

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