talbs.eth

Insane. Last night, NC lawmakers passed a tax bill that further penalizes sports bettors who have gross winnings of $2k from any single mobile app. NC bettors are already not allowed to deduct losses at all from winnings on state tax return (!) & are already capped at deducting 90% of losses on the federal return. With this precedent-setting provision, the Secretary of State can request win-loss reports from mobile operators & determine whether taxpayers are accurately reporting. Most losing bettors don't bother reporting so people generally roll their eyes on these issues. But now NC DOR will know that you were supposed to report & even worse, it starts with last year.

Not even close. NC DOR has a sharing agreement with the IRS. They already get access to the W2-G and federal 1040. It is amazing to me how people can’t comprehend what this bill does. It gives your entire wagering history to the government once you win an aggregate amount of $2,000 (not just one wager and you ignore all losses) in the prior calendar year. You will pay income tax on every single winning wager without factoring losses. If they pass a state gambling loss deduction, you will still lose your federal standard deduction, AGI phaseouts impacting child tax credit et al, and be subject to the 90% limit from OBBBA. No other state to my knowledge has this reporting requirement. They also changed the bill from DOR “may” request to “shall.” This bill could have easily just required the operators to report actual profit/loss for the calendar year. It is designed to increase revenue without increase taxes on the operator.