Thank you for all these videos, love that youre not trying to sell plays, instead trying to provide information to help people become successful on their own.
This is the best video on this subject matter and is well worth the 59 minutes. What is shared at minute 53 was the most insightful because so many people just do not get it. Thank you, Captain Jack!
Allow me to add a small correction. CFA refers to a Chartered Financial Analyst. CFP is a Certified Financial Planner. Financial Advisor is a very suspect term, that frequently involves little accredation and many financial advisors are not fiduciaries.
Wow, this was great, as with most your videos I learned a lot, thank you! Filing as a single professional can you max out more than one retirement option in the same year? For ex, can you do the max on a solo 401k, traditional IRA, Roth IRA, and sep IRA, or some combination there of?
Not really, you are bound by limits in aggregate across each type of retirement plan. Also worth noting, if you have a "day job" where you contribute to a retirement plan, that counts towards your "employee" portion of retirement contribution. For example, you contribute $15,000 to your 401k at your day job. You are also a professional gambler on the side and open a SEP-IRA. You can only contribute $4,500 of the EMPLOYEE side of the equation as the employee limit is $19,500 (2021). Then as the EMPLOYER side of your business you can contribute up to 25% of your business income up to the SEP IRA limits. These retirement plans are traditional IRA's and do not count against your Roth IRA limits assuming you qualify for them based on your AGI. Tax software like TurboTax Home & Business would calculate this all for you, as would a competent tax preparer/CPA.
Hey Cap Jack, quick question but first thank you very much for all these! It’s awesome content. Regarding taxes, if someone has a full time job outside of sports betting working for a corporation where the profits from betting are just side income how would you suggest they file taxes? Also, would someone file differently if it were profit from US books, overseas books like Bookmaker or locals?
The threshold from the IRS on whether or not you are more than just a hobbyist is largely based on two criteria. 1) Can you expect a profit from this endeavor and have you profited in at least 3 of the last 5 years? 2) Do you conduct yourself professionally (business plan, record-keeping, etc)? Whether or not you have another job that is a primary source of income or not is irrelevant to the IRS. That said, there are advantages to remaining a declared hobbyist and just declaring your gambling income as Other Income and taking the deductions you can on Schedule A. So that decision is largely up to you to make. Hopefully I described some of the benefits of declaring as a professional versus some of the risks. As for the second question, for US citizens, income is income no matter how and where it is generated. Certain types of income that show less of a paper trail tend to be the types of income that go under-reported in general.
@@CaptainJackAndrewsif I haven’t been sports betting for 5 years since it is new to my state this year, I assume I could ignore this criterion? And would tracking all bets in an app like Pikkit be sufficient for the second criterion?
@@AJB_5 Here is more recent IRS guidance on the topic since that comment 3 yrs ago: www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes
Hey Captain Jack, great video they really need to change the gambling tax laws because it screws over the recreational gamblers too assuming they file correctly. I'm in PA and I plan to just combine each book's (Draftkings, FanDuel, FoxBet, Barstool) win/loss and come to a final number and just report that . These books don't even send us any tax forms ( I have not got a single one for 2020) so how does the IRS expect us to report it correctly. Is this a bad idea?
I think the gambling tax laws are low priority for the IRS because 98% of gamblers don't have a net profit in the long-run. So what is the IRS really missing by making gambling income so arduous a process? If you didn't trigger a W2G or 1099 with your play in 2020 then reporting your net gambling income as Other Income and being done with it is probably "good enough." You can just say your definition of a gambling session was the entire 2020.
@@CaptainJackAndrews Thanks ! That is a route I may possibly explore .... Do you have any idea what's the penalty if you do you get audited. I am willing to take a penalty (depends how big) for the chance to save my standard deduction after all I am a gambler.
You'd first get a letter asking you to explain your tax return. Basically, asking to see your math. I'd say 98% of cases are resolved this way. An actual audit is a highly unlikely outcome if you don't have other non-standard forms of income or deductions in play.
@@Pointlessparodys yes, it is 100% accurate. There is no way to beat the book over the long run. If you are arbitrage betting your accounts will be eventually cancelled.
Thank you for all these videos, love that youre not trying to sell plays, instead trying to provide information to help people become successful on their own.
This is the best video on this subject matter and is well worth the 59 minutes. What is shared at minute 53 was the most insightful because so many people just do not get it. Thank you, Captain Jack!
the site every all REAL gamblers should follow! quality content champ!
Elite work Jack. Thank you for sharing.
Thanks for that! I'm glad it found an audience.
Thanks for all the great videos Captain Jack. Great job.
My pleasure!
Allow me to add a small correction. CFA refers to a Chartered Financial Analyst. CFP is a Certified Financial Planner. Financial Advisor is a very suspect term, that frequently involves little accredation and many financial advisors are not fiduciaries.
Thanks for the clarification, Darren.
Wow so informative, thank you!
Great video, can you do a 2024 version of this video when you get a chance please?
Another note about HSA. It can also be used for retirement and non medical after the age of 65. You just have to pay regular taxes on it then.
Good point, Robert.
Thanks Cap, luckily, I live in the UK, where we don't pay tax on winnings.
Wow, this was great, as with most your videos I learned a lot, thank you! Filing as a single professional can you max out more than one retirement option in the same year? For ex, can you do the max on a solo 401k, traditional IRA, Roth IRA, and sep IRA, or some combination there of?
Not really, you are bound by limits in aggregate across each type of retirement plan. Also worth noting, if you have a "day job" where you contribute to a retirement plan, that counts towards your "employee" portion of retirement contribution.
For example, you contribute $15,000 to your 401k at your day job. You are also a professional gambler on the side and open a SEP-IRA. You can only contribute $4,500 of the EMPLOYEE side of the equation as the employee limit is $19,500 (2021). Then as the EMPLOYER side of your business you can contribute up to 25% of your business income up to the SEP IRA limits. These retirement plans are traditional IRA's and do not count against your Roth IRA limits assuming you qualify for them based on your AGI.
Tax software like TurboTax Home & Business would calculate this all for you, as would a competent tax preparer/CPA.
Hey Cap Jack, quick question but first thank you very much for all these! It’s awesome content. Regarding taxes, if someone has a full time job outside of sports betting working for a corporation where the profits from betting are just side income how would you suggest they file taxes? Also, would someone file differently if it were profit from US books, overseas books like Bookmaker or locals?
The threshold from the IRS on whether or not you are more than just a hobbyist is largely based on two criteria.
1) Can you expect a profit from this endeavor and have you profited in at least 3 of the last 5 years?
2) Do you conduct yourself professionally (business plan, record-keeping, etc)?
Whether or not you have another job that is a primary source of income or not is irrelevant to the IRS. That said, there are advantages to remaining a declared hobbyist and just declaring your gambling income as Other Income and taking the deductions you can on Schedule A. So that decision is largely up to you to make. Hopefully I described some of the benefits of declaring as a professional versus some of the risks.
As for the second question, for US citizens, income is income no matter how and where it is generated. Certain types of income that show less of a paper trail tend to be the types of income that go under-reported in general.
Captain Jack Andrews, thankyou very much. Appreciate the response!
@@CaptainJackAndrewsif I haven’t been sports betting for 5 years since it is new to my state this year, I assume I could ignore this criterion? And would tracking all bets in an app like Pikkit be sufficient for the second criterion?
@@AJB_5 Here is more recent IRS guidance on the topic since that comment 3 yrs ago: www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes
Hey Captain Jack,
great video they really need to change the gambling tax laws because it screws over the recreational gamblers too assuming they file correctly. I'm in PA and I plan to just combine each book's (Draftkings, FanDuel, FoxBet, Barstool) win/loss and come to a final number and just report that . These books don't even send us any tax forms ( I have not got a single one for 2020) so how does the IRS expect us to report it correctly. Is this a bad idea?
I think the gambling tax laws are low priority for the IRS because 98% of gamblers don't have a net profit in the long-run. So what is the IRS really missing by making gambling income so arduous a process? If you didn't trigger a W2G or 1099 with your play in 2020 then reporting your net gambling income as Other Income and being done with it is probably "good enough." You can just say your definition of a gambling session was the entire 2020.
@@CaptainJackAndrews Thanks ! That is a route I may possibly explore .... Do you have any idea what's the penalty if you do you get audited. I am willing to take a penalty (depends how big) for the chance to save my standard deduction after all I am a gambler.
You'd first get a letter asking you to explain your tax return. Basically, asking to see your math. I'd say 98% of cases are resolved this way. An actual audit is a highly unlikely outcome if you don't have other non-standard forms of income or deductions in play.
@@CaptainJackAndrews Thank you for the insight!!! It is very much appreciated
NO GAMBLER EVER WINS LONG TERM. PERIOD!
That is not accurate
@@Pointlessparodys yes, it is 100% accurate. There is no way to beat the book over the long run. If you are arbitrage betting your accounts will be eventually cancelled.