How does the sports betting tax work

im not sure if this is the right section, and I know I’m very early, but I would like to know how ports betting is taxed? Is it like fantasy sports and it’s withdraws less deposits? 

Or winnings minus total total beta places and that number is what u get taxed on such as $1,000 in winnings you lose $600, so you would be taxed based on $400? 

Before I get myself into a deep hole just based off my total winnings minus total bet it’s like $1300. But only have $1250 in deposits and $1500 in withdraws so I’m not sure if it’s based on winnings or your withdraws. I remember when I used to play Ed’s I could win 100 grand in a year but it went by withdrawals less deposits vice versa. 

Im reading the state laws and what not but it’s not much help just says the tax rate is 8,5% in a casino or I believe 13.5% for online but very vague and no details simply just the tax rate and the rate is on wagers placed and mentioning making it sound like each wager that’s a winner the book automatically keeps a percentage of that as a withholding but I think only if the winnings are like 300% of the initial bet and it wasn’t very clear but it also sounded the way it’s worded this tax rate applies and taxed are only on winnings 300 times higher then initial wager amount. Really don’t need to find out next year they go by total winnings regardless of how much u lose so if u have $60,000 in winnings but $55000 in losses they tax you on $60k not 5k. I’m setting aside money for tax season but I want to make sure I fully understand how this works. Daily fantasy sports is simple just subtract 2 numbers and your done you have your taxable number then u would deduct your expenses from there. 

new jersey and if that’s the case that is dumb if that’s the case. If I understand u correctly tgmhen realistically u could have more losses and no actual profit. 

On a federal tax return, you can deduct gambling losses up to but not exceeding your winnings, but only if you can use SCH A to itemize deductions. You'll have to look and see if your state allows the same tax benefit.

they do but It’s confusing. To me if I win $2,000 but lost $1400 then in my eyes I should only be taxed in what I won $600 or if I win $1000 but lose $1100 there should be no tax if I didn’t make a profit. That is what I’m trying to figure out. If u lose more then you win do u still pay tax and after u do the deductions do you only get taxed on what u actually won. Like above regardless of what I won after I deduct losses if it’s only positive by $1000 then 1k is all I get taxed on. 

No there actual books now.  Betting is legal in jersey now. And yes they have my last 4 of social I believe. 

It’s an online sportsbook. We have both online and physical. I think sugarhouse is apart of golden nugget casino I’m ac, but they dnot do the greatest buisness in terms of letting you use the “cash out” option and not grading nfl games immediately. I believe you need the last 4 of social to play any where online for New Jersey. It’s not a book like bookmaker/5dimes. It’s the first year for it so I’m sure it’s very confusing. The only thing that’s clear is the state tax rate of 7% physical book 13% online sports book and your expenses can’t be higher then your winnings. Does nothing about going into detail about what the end result is on what is taxed. You can win 50 grand but does that mean u pay tax on 50 grand even if I actually lost 45 grand? That’s what I’m trying to figure out after decdicting losses am I taxed on 50 grand or $5,000 because there is a huge difference in the two numbers.

actually think I’m done this sportsbook is a scam I’m going back to the legit books these legal ones are scams and steal wagers 

Jersey online books are HORRIBLE !!!  Already pushed multiple wagers and they grade as losses and when you contact them over and over again they still DO not grade the PUSH as a PUSH !!  It takes them 5 days on average to get back to u and there is no phone number !! On top of that the ODDS are horrendous.