How much is sports betting taxed? Here’s what you will pay if you win a KC Super Bowl bet
With Super Bowl 2024 played in Las Vegas and sports betting legal in Kansas, many gamblers might hope to win big on this game.
But if you win a bet in Kansas, how much would you have to pay in taxes?
This year’s match between the Kansas City Chiefs and the San Francisco 49ers is the second Super Bowl since sports betting was legalized in Kansas. Across the state line, similar legislation stalled in Missouri. Thirty eight states plus the District of Columbia allow sports betting.
Anyone over age 21, no matter where they live, can bet on games while in Kansas, whether at a casino or online.
Here’s how much you have to pay in taxes if you win a Super Bowl bet in Kansas.
Federal taxes
If you win $600 or more with a payout 300 times your bet, you’ll likely receive a federal tax document from the casino or sports betting company, according to financial website NerdWallet.
Called a W-2G, this form might be given to you immediately or mailed to you later.
For some winnings of $5,000 or more, the gambling company withholds 24% of your net winnings for federal taxes, the IRS said.
Most people put their gambling winnings on their 1040 as “Other Income,” according to the IRS. On itemized taxes, you can deduct gambling losses from the taxes on your winnings.
Kansas state taxes
In the Sunflower State, 5% of your net gambling winnings go to state taxes.
To calculate that amount, subtract the amount of your bet from your payout, then multiply that number by 0.05. Put your Kansas tax information in the state specific boxes on the W-2G.
Where does my tax money go?
In 2023, Kansas’ sports betting tax dollars went towards solving gambling crimes, attracting professional sports teams to the state and helping people with gambling addictions.
Do you have more questions about Kansas City happenings? Ask the Service Journalism team at kcq@kcstar.com.
This story was originally published January 30, 2024 at 3:57 PM.
