From how much money onwards must sports betting be declared?

Obtaining monetary rewards for enjoying sports betting is, in the eyes of the tax authorities, a source of additional income and, as such, must be declared in the Income Tax campaign of the corresponding fiscal year.

It is a way of regulating the acquisition of the monetary prizes derived from the practice of this activity related to sports, and it allows to regularize the situation of those who obtain prizes of diverse caliber.

It must be taken into account that, in the eyes of the AEAT, the income obtained in sports bets and other games of chance are considered as capital gains and, as such, it is compulsory to declare them in the annual taxation of the Personal Income Tax (IRPF).

From what amount must bets be declared?

As with all sources of income subject to compulsory taxation, the AEAT stipulates a series of requirements that must be met in order to maintain the principle of fairness.

But let's go to the typical question in every Income Tax campaign: from how much money must bets and the income obtained from them be declared? Several data must be taken into account: the volume of rewards, the sum of additional work income, and the volume of the same income according to the number of annual payers.

As a general rule, it is compulsory to include income obtained from sports betting and other games of chance when:

  • A profit is obtained per year that exceeds the threshold of 1.600 €.
  • A profit is obtained per year that exceeds the threshold of 1.000 euros, if the income from work adds up to an amount greater than 22.000 euros.
  • In case of having two payers, the limit of earned income to declare is reduced to €14,000, as long as the second and successive payers add up to more than €1,500 per year.

What happens if this income is not declared? That the AEAT can initiate proceedings to force the declarant to pay a fine, equivalent to 100% of the amount of the total earnings obtained.

It is worth mentioning that the AEAT has the tools to detect any non-compliance derived from the declaration of income from sports betting, stipulate how much the taxpayer must declare and apply the corresponding penalties.

How much to declare on bets: current brackets

The main concern for taxpayers who have obtained income from betting and gambling is to know how much to declare (in betting, as in all other sources of income, contributions are divided by brackets), from how much sports betting must be declared on a mandatory basis (amounts of less than 1.000 euros are usually exempt from tax obligations), and what deadlines exist for complying with these tax obligations.

Well, according to the tax regulations in force for the current Income Tax campaign, the IRPF brackets are divided according to income, establishing a higher amount for those who receive more income. Keep in mind that you must control, therefore, two brackets in your tax return: the volume of your earnings and the volume of IRPF withholding, which depends on the total income.

The current Personal Income Tax brackets are as follows:

  • From 0 to 12.450 euros: 19% withholding.
  • From 12.450 to 20.200 euros: 24% withholding.
  • From 20.200 to 35.200 euros: 30% withholding.
  • From 35.200 to 60.000 euros: 37% withholding.
  • More than 60.000 euros: 45% withholding.
  • Over €300,000: 47% in amounts

However, it should be borne in mind that the application of these brackets is subject to the volumes of total winnings discussed above. If the total betting rewards do not reach the minimum figures, there is no obligation to declare such income.

Sports betting: when do I have to declare my winnings?

The management of deadlines is important when it comes to complying with tax obligations. The Income Tax campaign usually starts in April, and it is crucial to consult the tax data and the draft tax return to check that the AEAT has properly handled the data relating to income and deductions.

Every taxpayer has the right to leave in the hands of a tax manager the checking of the draft and the filing of the return, so as not to worry about knowing from what amount to declare bets and to delegate to more competent personnel all these issues.

In addition, the management of the times will also fall on your shoulders, which gives a small advantage in terms of preparation and checking of the fiscal and tax data of the taxpayer.

For the filing of the 2022 Income and Wealth tax return, the deadline starts on April 11st and ends on June 30. If you wish to contact the AEAT by telephone and file the return with the help of an agent of the AEAT, you will have to wait until May, when the deadline for telephone appointments opens. It is also possible to go in person to an AEAT office to deal with any query related to the return and receive personalized attention.

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