Do I need to file taxes in each state where I physically placed sportsbook app bets?

7 If I only won like $500 in another state through a betting app while traveling, is it even worth filing there? Do the sportsbook apps automatically report to each state where I placed bets or just my home state?

15 For small amounts like $500, it may fall below the filing threshold for non-resident income in many states, but this varies by state. Some states require filing if you have any income sourced there, while others have minimum thresholds. As for reporting, sportsbooks are generally required to report winnings to the IRS (usually via Form W-2G for larger winnings), but reporting to states can vary. Most apps track your location data to comply with state gambling laws, so they do know where you placed each bet. However, they typically don't automatically report to every state - they'll usually provide you with documentation showing your winnings, and it's your responsibility to report correctly on state returns.

22 How does taxr.ai handle the situation if the sportsbook doesn't provide location data for each bet? My statements from BetMGM don't seem to show where I was physically located for each wager.

17 Does it also help with calculating the tax credits for taxes paid to other states when you file in your home state? That's the part that confused me the most last year.

9 For sportsbooks that don't provide explicit location data, the system can help you reconstruct it by analyzing transaction timestamps and cross-referencing with other documentation like travel receipts, hotel stays, or even location history from your phone if you choose to provide that. They have an interface where you can manually verify locations for specific transactions if needed. Yes, it definitely helps with calculating tax credits for taxes paid to other states. That was actually the most valuable part for me too! It shows you exactly how much tax you're paying in each state and then calculates the appropriate credit to claim on your home state return. It prevented me from accidentally double-paying taxes on the same income.

14 How exactly does Claimyr work? Do they just call and wait on hold for you or something? I don't understand how a service can get you through faster than calling yourself.

19 I'm skeptical. State tax departments are notoriously impossible to reach. You're telling me this service somehow magically gets through? Did you actually get clear answers about sports betting taxes or just generic info?

11 They use a system that navigates phone trees and waits on hold for you. When an actual human representative answers, you get a call connecting you directly to them. No more listening to that awful hold music for hours! The service definitely got me through to actual state tax representatives who were able to answer my specific questions about app-based sportsbook winnings. For example, I learned that one state considers the winning bet to occur where the bet was settled (when the sporting event ended), not necessarily where you placed the bet. Another state told me they only require filing if the winnings exceed their non-resident threshold. Each state has different rules, which is why speaking directly with their tax departments was so valuable.

12 But can you deduct losses that occurred in different states against winnings in other states? Like if I won $1000 in New Jersey but lost $800 in Pennsylvania, can I report just $200 net winnings to New Jersey?

5 That's a great question. Unfortunately, gambling losses and winnings are generally treated separately for state tax purposes. You typically need to report the full winnings to each state where you had them, and then deduct losses on your federal return and potentially your resident state return if they allow it. States generally don't allow you to net your gambling winnings and losses across state lines. So in your example, you'd likely need to report the full $1000 to New Jersey on your non-resident return, while the $800 Pennsylvania loss would be part of your itemized deductions on your federal return (subject to the limitation that you can only deduct losses up to the amount of your total gambling winnings).

8 Technically yes, but realistically the states probably won't come after you unless you had major winnings. The sportsbooks are required to issue W-2Gs for large payouts (usually over $600) though, and those get reported to tax authorities.