You'll receive a W-2G form if your wins cross these thresholds: You need to include information from your W-2G forms on a tax return. They outline how much you won and what amount, if any, was withheld. Licensed MD betting operators like Caesars Maryland sportsbook issue W-2G forms when you win certain amounts. The final piece of the gambling tax puzzle is the W-2G form. Form W-2G: Filling out the Maryland state tax form for gambling winnings tax That means you can't simply report the difference between your wins and losses. Losses can be used as deductions, but they need to be handled in specific ways.

We'll explain how these work in the next section.įor now, just know that you need to report gross revenue from gambling on your tax return.

Regardless of whether or not gambling winnings are withheld, you have to report all of the money you make. We've already explained that winnings can be withheld once you cross certain thresholds. You'll also be issued with a W-2G for wins of $600 or more. Anything less and you'll need to complete a 502 (Maryland residents) or a 505 (non-residents) form. This means wins over $5,000 will have deductions. You have to pay tax on winning horse racing bets just as you would with other types of gambling income. Wins between $601 and $5,000 must be reported manually on your tax returns. Additionally, the Maryland State Lottery also withholds 24% of any wins over $5,000 for federal tax. Maryland Lottery TaxesĪs per MD tax laws, 8.95% is withheld from lottery wins over $5,000 if you're a resident and 8% if you're not. For sports bettors in MD, winnings are liable for 24% federal tax and up to 5.75% state income tax. The Maryland sports betting tax rate is 15% for operators. What is the Maryland Sports Betting Tax Rate?

Pa online gambling bill poker tax rate