North Carolina Sports Gambling Taxation

Gambling has never been easier due to the legalization of sports gambling in North Carolina. 

This year is a great time to try your luck to see if you can obtain the coveted W-2G tax form by winning over $600 total this year. Unfortunately, it is not all good news since North Carolina does not allow you to offset your gambling winnings by your gambling losses unlike the federal government if you itemize deductions. If you do not itemize but take the standard deduction, then losses are not taken into account.

Fortunately, this may change in the future, as Gov Roy Cooper is calling for state legislators to enact changes to allow gambling losses to offset income. Please keep in mind that any winnings should be reported and will be taxed at the ordinary tax rates of your jurisdiction. The North Carolina tax rate is set to be 4.5% for 2024 and 4.25% for 2025.

Check out the article below for more information about this update and reach out to our staff if you have any questions!

https://www.wral.com/story/cooper-calls-for-change-to-tax-law-around-gambling-winnings/21409307/