Germany's World Cup loss also costs betting N.J. governor

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Germany's World Cup loss also costs betting N.J. governor

Wednesday, June 27, 2018

NJ Gov Phil Murphy places first legal sports bet June 14 2018 AP video screenshot

New Jersey Gov. Phil Murphy (D) places the state's first legal sports bets on June 14 at Monmouth Park Racetrack. (Screenshot from AP coverage. Click image to view full video.)

New Jersey's governor put his money behind the Garden State's new sports betting option. Now he's paying for that.

New Jersey started taking bets on sporting events on June 14, a month after the Supreme Court ruled in the state's favor and three days after Gov. Phil Murphy signed the law making his and, N.J. establishments hope, millions of other such wagers legal.

The debut of the new sports betting offering at casinos and racetracks throughout the state coincided with the start of the World Cup football (or soccer as it's known here in the United States) tournament.

Executive betting example: After affixing his signature to the new law, the Democratic chief of state took advantage of his position and placed the first legal sports bet in New Jersey.

In making sports wagering legal, Murphy lauded the effort as another way that N.J. casinos in Atlantic City and racetracks throughout the state to "attract new business and new fans, boosting their own long-term financial prospects. This is the right move for New Jersey and it will strengthen our economy."

Murphy forked over $20 at Monmouth Park racetrack on June 14 on a bet that Germany would win the international football/soccer competition.

It seemed like a pretty safe wager. Germany was the defending World Cup champion.

But today, Germany, which hadn’t been eliminated in the first round since 1938, ended up last in its group after losing to South Korea.

And just like that, Murphy was out $20.

Maybe the governor's other, more local wagers — another $20 each on the New Jersey Devils to win the 2019 Stanley Cup and NASCAR champ and former Garden State auto racer Martin Truex, Jr., to take the green flag at the 2019 Daytona 500 — will pay off next year.

Taxes on winning wagers: If you're more of a bettor than Murphy, you're in luck tax-wise at least. The Tax Cuts and Jobs Act doesn't change the tax treatment of wagering.

The money you make on any and all bets, even the illegal ones if your state hasn't yet made sports betting available, is taxable income.

And if you're like Murphy and have some bad bets, hold onto to those slips and keep a record of all your gambling activities.

You still can claim losing amounts as an itemized deduction on Schedule A to offset your gambling winnings, as detailed in my earlier post on the lucky Texas woman whose Kentucky Derby bet paid off handsomely.

You also might find these items of interest:

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Posted on Wednesday, June 27, 2018 at 03:18 PM in Gambling, Law, Sports, State/Local, Taxes | Permalink | Comments (0)

Tags: gambling, Germany, New Jersey, South Korea, sports betting, state gambling, Supreme Court, tax, taxes, World Cup

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Weekly Tax Tip

Seasonal job tax and scam tips — It's seasonal job season. Even the Internal Revenue Service is looking for help this time of year. Just be aware of the tax implications of added work. And definitely don't fall for any employment scams in your job search. (Nov. 22, 2019)
Check out all the latest post-Tax Day tax advice in the 2019 edition of Weekly Tax Tips. Many of these once-a-week tips will focus on planning moves to cut your 2020 tax bill. If, however, you're working on a filing extension for your 2018 return, you can get a refresher of the 2019 Filing Season Tax Tips at their respective monthly pages: January, February, March and April.

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Tax Year 2019 Countdown
It's over! The final 2018 tax year extended filing deadline has passed, unless you get more time because your filing was affected by a natural disaster like Tropical Storm Imelda. For most of us, though, the passage of Oct. 15 means it's time to focus on the tax return we'll file next year. We have until Dec. 31 this year to make moves that will reduce our already accruing 2019 tax bill. The countdown clock below will make sure you don't miss these crucial actions or any tax deadlines.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

Welcome November! We love your cooler weather, the family gatherings and all that good food (yay pumpkin pies!) and, of course, the extra hour we get thanks to falling back to Standard Time to work on cutting our tax bills.

Nov. 1: This 11th month starts with Affordable Care Act (ACA) open enrollment, which runs through Dec. 15. Yes, the ACA, or Obamacare as it's still popularly known, is still here. You can enroll at HelathCare.gov or in some places at a state marketplace.

And while the Tax Cuts and Jobs Act (TCJA) eliminated the federal individual mandate, the federal subsidy, aka the premium tax credit, to help pay for coverage remains in the tax code.

Nov. 3: Daylight Saving Time ends at 2 a.m. today, as we fall back an hour to our local Standard Time.

Sure, you can spend the extra 60 minutes sleeping. Or you use the time to review and adjust your payroll withholding. The goal is to avoid owing a lot or getting a refund next filing season. A paycheck check-up is an especially good idea if you have a side hustle or other freelance earnings.

Nov. 11: Veterans Day is Nov. 11. That date marks the official, formal end of World War I at the 11th hour of the 11th day of the 11th month of 1918. It eventually evolved into a day to recognize veterans of all armed conflicts.

On this federal holiday, honor veterans however you feel is appropriate. If you're a business owner, consider hiring a veteran. Adding a new military-trained worker by year's end also might provide your firm a tax benefit thanks to the Work Opportunity Tax Credit (WOTC).

Nov. 12: Does your job include tips? If so and you received $20 in tips in October, use Form 4070 to report them today to your employer. This report usually is due on the 10th of each month, but that fell on Sunday and Monday was the Veterans' Day federal holiday, it is pushed to today, the next business day.

Nov. 18: Speaking of income, if you're looking for or have already landed a seasonal job to make a little extra holiday spending cash, pay attention to how you're paid. It makes a difference in your taxes. If you're an independent contractor instead of an employee, you're responsible for paying self-employment taxes, as well as the income taxes that are usually withheld from employees' paychecks. If you're unsure about your employment status, the Internal Revenue Service has some guidelines on when each work status applies.

Nov. 22: In many years, it's Thanksgiving week, but not in 2019. This annual celebration of gratefulness is next week. You can use this extra time to make things better for others. Consider giving to the many charities, both national and those in your own neighborhood, that help the less fortunate, from food banks to homeless shelters to funding educational programs in needier schools. As long as the group is an IRS-approved 501(c)(3) nonprofit, if you itemize you can claim your gift as a tax deduction on Schedule A.

Nov. 28: Happy Thanksgiving!

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Take a break from taxes for turkey, football and time with your family. If you also happen to have a little cash on some fantasy or, thanks to the Supreme Court, real games, remember that wagering wins on sporting events, like all bet payoffs, are taxable income.

Nov. 30: Finally! The Atlantic hurricane season officially ends today.

The worst tropical damage came this year from Hurricane Dorian along the eastern seaboard and Tropical Storm Imelda in Texas.

While the countdown clock below is marking off the days left until the official end of the 2019 hurricane season, Mother Nature can throw many types of dangerous fits any time, anywhere.

So we can't let down our storm guards. You can find tips on getting ready, physically and financially, for all types of natural disasters, as well as tax help for recovery efforts and tax deductions for donations to those who are hit by such catastrophes at the ol' blog's Storm Warnings pages.

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

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