Ready…set…hike! Recently, Supreme Court justices upheld a 2014 New Jersey law allowing sports betting while striking down a 1992 federal law that banned betting in states that didn't already have a law on the books. Now, other states could follow the Garden State's lead.
According to CNBC.com, this new tax law, which took effect earlier this year, will continue to allow winners to deduct their gambling losses up to the amount of gambling income — but only if they itemize their deductions instead of taking the standard deduction. Betters beware — just because the standard deduction nearly doubled for all taxpayers and most deductions were eliminated, fewer taxpayers are expected to have enough deductions to make itemizing worth it. If you win more than $5,000, you can expect the payer, such as the casino, to withhold 24 percent for taxes.
Learn more about the decision and how it could affect you here.