If you win big on Super Bowl betting, don't forget to pay taxes.

• According to the American Gaming Association, approximately 31.4 million adults plan to place bets on the Super Bowl matchup between the Los Angeles Rams and Cincinnati Bengals on Sunday.
• In 30 states and Washington, D.C., legal sports betting is now available due to the Supreme Court's 2018 decision to overturn a federal law that prohibited it.
• Sports bets are subject to taxation.

Don't forget that the IRS will take a portion of your Super Bowl bet winnings if you decide to spend money on it this weekend.

The American Gaming Association predicts that Americans will bet a total of $7.61 billion on the Los Angeles Rams vs. Cincinnati Bengals matchup on Sunday night in Los Angeles. However, regardless of where you place your bet, whether at a casino, online, through a pool or fantasy league, or at your neighbor's annual bash, the IRS expects you to disclose your gambling activities at tax time.

No matter the amount of winnings, location, or method, it is always subject to tax, according to Susan Allen, senior manager for tax practice and ethics at the American Institute of CPAs.

According to research from the gaming association, an estimated 31.4 million adults plan to bet on Super Bowl 56, which represents a 35% increase from the previous year.

As legalized sports betting expands nationwide, growth is observed. Since the Supreme Court overturned a federal law in May 2018, legal sports wagers are now available in 30 states and Washington, D.C.

Sports betting proceeds are considered taxable income, so it's important to report them to the IRS, even if you win outside of regulated channels.

The IRS simplifies reporting for casual gamblers who bet through regulated sports betting in states that allow it by requiring the payor (the casino) to report their winnings.

If your sports wager wins more than $600 and the payout is 300 times the original bet, you must pay 24% of your winnings in federal taxes.

If you win more than $600 in fantasy sports, you may receive a Form 1099-MISC or 1099-K, depending on the payment method.

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Allen stated that you would receive a tax statement, which would be reported to both the government and you.

Even if you don't receive a form, your gambling income is still subject to taxation.

If you don't pay taxes on your casino winnings, you still need to report them on your tax return.

To lower the amount you owe on your winnings, you can deduct your gambling losses. However, be cautious as you may need evidence to support your claim if the IRS requests it.

To deduct gambling losses from your tax return, you must itemize them. However, most taxpayers choose the standard deduction over itemizing because it is financially advantageous, especially with the nearly doubled standard deduction under the new tax law from 2018 to 2025. For 2022, the standard deduction amounts to $12,950 for single taxpayers, $25,900 for joint returns, and $19,400 for head of household filers.

Allen stated that you cannot claim losses in excess of your actual winnings.