IRS Issues Updated Tax Rule
Horse Racing Wins as IRS Issues Updated Tax Rules
Changes to the United States tax code that go into effect Thursday, September 28th, 2017, will directly benefit horse players by letting you keep more of your winnings and eliminating the need for most W2G forms.
The United Tote System reports winnings to the IRS when the return exceeds $600 and 300-to-1 odds and automatically withholds from your winnings when the return exceeds $5,000 and 300-to-1 odds.
Prior to September 28th, 2017, the 300-to-1 odds criteria were calculated using the base price of the wager. As a result of the new IRS ruling, it is now calculated using the total cost of the bet.
That means more money in your pocket!