I just won over three thousand last night on a online sports bettting website,how does that work with taxes?

Question

do i have to like write anything off or something like that in march?

Answer 1

You have to declare your winning which will be subject to federal and state income tax but not employment tax (soc sec and medicare tax).  You should receive a W-2G with your winnings declared, and the IRS gets a copy too.

You get to deduct any gambling losses that you can prove up to the amount of your winnings.  You do so by itemizing your deductions on Schedule A.  Unfortunately if you don't have enough itemized deductions - those loses plus the usual itemized deductions, you get no benefit from these losses and end up paying tax on the whole winnings.