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

New postcard-sized tax Form 1040 is not so simple

US territory taxpayers face hurricane-delayed 6/29 deadline

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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Today's Tax Tip

Added summer income means more tax considerations — If you’re taking on added jobs this summer instead of taking a vacation, be aware of the tax implications. Students at their first paying job are encountering the Internal Revenue Service for the first time. And workers well past their school days but who are earning extra via summer gigs could face new self-employment tax challenges. (June 15, 2025)
The 2025 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

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Tax Year 2025 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 27, the IRS said it expected more than 140 million individual tax returns for tax year 2024 to be filed by April 15. When the month started, the agency was around 39 million short of that number. While many taxpayers no doubt got their 1040s in by Tax Day, million every year get an extension to file. That's fine.

In fact, the Internal Revenue Service appreciates some of us spreading out our tax submissions. It gives the agency time to process the surge of returns that arrive en masse on April 15.

But enough about Uncle Sam's tax collection issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your extended Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your 2025 tax bill.

The monthly tips and reminders a little further down this column can help you finish up your extended Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your 2025 tax bill.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

☀️ Hello 🌞 June! ☀️
Your radiant face, bringing us the start of summer, is long overdue. We need your consistent warmth and a sunny attitude to fully recover from tax season, even one that didn’t throw us too many curveballs.

via GIPHY

And let’s be honest. We’re not really in the mood for summer tax tasks. But there are some that do need attention, especially if you got an extension to file back in April. Taking care of these tax matters now can make the coming 2026 filing season go smoothly. Even better, some tax moves can mean you’ll owe Uncle Sam less. So grab your sun visor, and let’s get to them!
June 1: Summer conjures dreams of lazy beach days. But for full-time coastal residents, June also brings the start of the annual Atlantic (and Gulf of Mexico) hurricane season, which runs through Nov. 30. Federal forecasters once again are forecasting a more active than usual hurricane season. And while the tropical storm season heats up in August and September, now is the time to get ready.

Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center say we could get 13 to 19 total named storms, which are those with winds of 39 mph or higher. Of those, six to 10 are forecast to become hurricanes, meaning winds of 74 mph or higher. Three to five of the storms this season could become major hurricanes; that’s category 3, 4 or 5, with winds of 111 mph or higher.

Regardless of the count, it only takes one to wreak havoc. The countdown clock above can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms. You also might want to check out the ol' blog's Storm Warnings collection of special pages with posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild.

June 6: With school out, working parents need to make child care arrangements. Consider day camps. I know, many filled up earlier this year, but check out the options in your area. Not only do day camps offer some supervision of your kiddos while you're at the office, the activities' costs also count toward claiming the child and dependent care credit.

June 10: If your job is as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation, I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food, groceries and/or prepared meals, delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

If you got at least $20 in gratuities in May for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

June 14: Happy Flag Day! It's not a day-off-work federal holiday, but Flag Day has been an official day to celebrate the Star-Spangled Banner since 1949. If you need to buy a U.S. flag to fly today, you also might get a tax break. Several states exempt the national symbol from sales tax. Check with your state's tax department to see if you can save on your patriotic display.

June 15: Happy Father's Day!

Dad might not say so, but he appreciates being recognized, so take time today to let him know you care. And if your father is getting on up in years, take the time when you visit to make sure he doesn't need some added help from you. If you provide papa a little, or even a lot of assistance, there's a chance you could get some help from a couple of tax credits.

June 16: It's Tax Day again, this time for taxpayers living and working abroad. That includes military personnel posted outside the United States or Puerto Rico. This automatic filing delay until mid-June officially is on 6/15, but is a day later this year because the 15th was on Sunday.

Today, June 16, also is the one-day-later deadline for the second estimated tax payment for the 2025 tax year.

June 19: It's Juneteenth. This date marks when Texans finally received word that all slaves were free. And although it is our newest federal holiday, and is celebrated on June 19, not on a nearby Monday, it is the oldest nationally celebrated commemoration of the ending of slavery in the United States.

June 20: At 10:42 p.m. Eastern Time it’s official. Summer is here, arriving on this longest day of the year.

It’s also a dangerous season for many who don’t have air conditioning. Many charitable groups help people cope with the heat. If you itemize, your gift to such IRS-qualified nonprofits this summer — or any day in any season in 2025 — could be tax deductible on the tax return you file next year.

June 30: If you got an extension to file back in April, you don’t have to wait until the final Oct. 15 deadline to do so. You can get this tax task out of the way so you don’t have to think about it for the rest of the summer. You also might be able to file electroncally at no cost if your adjusted gross income (AGI), regardless of your filing status, is $84,000 or less by using the official IRS.gov Free File website.

Eight software companies are part of this year’s IRS-Free File Alliance partnership option at IRS.gov. They will be available through the Oct. 15 extension deadline, but again, you don’t have to wait. And if your income is too high, you still can file for free by using Free File's Fillable Forms option.

Small Business Tax Calendar: If you run your own company, you know there are myriad important filing, deposit and record keeping dates throughout the year that your company needs to meet. You also can track key business and individual tax deadlines in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-two states and D.C. collect personal income taxes. But even if you live in of the eight states without any 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.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2025 page.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
It is 2025 and, yes, it's still an issue
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
CDC Vaccines
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HHS Combat COVID
USA.Gov COVID Info

June 2025

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Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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