Individuals betting on the FIFA World Cup need to understand the potential tax obligations. Gambling winnings are considered taxable income. As such, they’re subject to federal rates up to 37%, and state income tax may also apply. Losses can be claimed as federal itemized deductions, limited to 90% of losses and capped at winnings. Wagers made via online prediction markets may not be subject to standard gambling tax rules, but the IRS hasn’t explicitly provided guidance on the issue. Not all sports bettors receive W-2G tax forms, so you should report any winnings on your tax return, regardless of the wager platform.
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