It’s time to talk about taxes. Specifically, it’s time to talk about Legendz taxes. As whilst this may not be the most exciting topic to cover in the social betting world, all bettors need to understand exactly what is required.
In this guide, I will provide an overview of the current laws surrounding Legendz taxes and explain exactly what you need to do when reporting your Legendz winnings. Plus, to help stay fully compliant with relevant federal and state tax laws, I’ve also got some expert tips on how to correctly report your winnings and stay compliant.
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Legendz Casino Highlights
- Early Win feature
- Lots of Betting Markets
- Top Leagues
Pros and cons of Legendz taxes
- You are not taxed directly by Legendz
- Full prize redemption information can be found on your account page
- Help available from Legendz customer support
- Redeemed prizes are taxable under federal/state laws
Do you have to pay taxes at Legendz?
Let’s start with some good news, the answer to the question ‘Does Legendz charge taxes?’ is a resounding no. Whenever you purchase an optional Gold Coin package in one of the
Legendz legal states
or request a Sweeps Coin redemption, Legendz will not directly apply any taxes to your payments. Similarly, you will not be taxed when you open your new account at Legendz. This means you can pick up their current no deposit welcome offer of 500 Gold Coins and 3 Sweeps Coins without incurring any Legendz taxes. Although this is called a “no deposit offer”, just remember that deposits or withdrawals are not possible at a social sportsbook as they are using virtual currencies instead of real money.
Now for the bad news – Although the answer to ‘does Legendz charge taxes?’ is ‘no’, if you redeem any real money prizes from Legendz sweepstakes, federal and state taxes will be applied. This is because tax laws apply to all sports betting and casino winnings, even those made at sweepstakes sites. If you fail to stay compliant with these tax laws, you will face fines and potentially other penalties.
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How to report your Legendz taxes
The way in which you have to report your Legendz winnings depends on the amount you are declaring. If your Legendz redeem amount for the tax year totals less than $600, you can just declare it on your annual tax return as an ‘Other Income’ item.
However, if the prizes you exchange your Sweeps Coins for are more than $600 over the course of the tax year, you will need to report your winnings to the IRS using a Form W-2G. You may find that Legendz issue you with this form when you reach the threshold, but if not, you can easily request it from customer support. You also need to obtain a 1040 form from the IRS and insert your prize redemption total into the relevant sections.
How much tax will I have to pay?
Whilst the federal tax rate for gambling winnings is 24%, you also have to consider the specific tax laws and rates in the state in which you are betting. If you have read my article on ‘where is Legendz legal?’ you will know that the brand is currently legal in 43 US states, so if you are located in one of those states, make sure you have a thorough understanding of the tax rates that will be applied to your prize redemptions. It is also very important to note that there are states where Legendz is NOT available, as you can see in the table below:
| Legal state | Legendz availability |
| Nevada | No |
| Idaho | No |
| Washington | No |
| Nebraska | No |
| North Dakota | No |
| Michigan | No |
| Ohio | No |
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Three expert tips for correctly submitting your Legendz taxes
Hopefully, the above information does not sound too daunting. But to help ensure you do not make any mistakes and stay fully compliant when completing your Legendz taxes, here are three expert tips:
On your Legendz account page, you will be able to see a list of your redemptions and other transactions. Make sure you regularly check this page, so you can track your winnings and prepare your tax returns appropriately. For example, if you are approaching the $600 threshold for your redeemed sweepstake prizes, you can request a Form W-2G from Legendz in preparation for filing your returns.
We’ve all been guilty of leaving our tax returns until deadline day, but the simple truth is that this approach can lead to errors and (worst case scenario) missed deadlines. As such, the sensible approach is to prepare your paperwork at least a few days before the tax deadline date. If that means not requesting a redemption for your Sweeps Coins in the run-up to the deadline, then so be it. The most important consideration you need to make is the next tip.
We can’t all be tax experts, but luckily there are plenty of highly qualified professionals out who can help you complete your Legendz taxes correctly. So if you are struggling with a particular part of the tax return or simply want an expert to double-check your forms, do not be afraid to reach out and contact a tax professional. Similarly, if you are unsure of your total redemption amount from Legendz, contact customer support via email and an agent will be able to clarify the situation.
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Summing up Legendz taxes
This is hardly the most glamorous subject in the world, but I cannot overestimate the importance of getting your Legendz taxes right. Hopefully, the above information is easy to digest and you are now in a position to fill out your tax forms correctly. The key elements to remember are the tax thresholds, the specific forms you need to complete and the deadline dates. If you are fully on top of all those areas, you should be in a position to successfully complete your Legendz taxes without encountering any problems.
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Legendz taxes: FAQs
🇺🇸 Do I have to pay tax when I purchase a Legendz Gold Coin package?
Legendz does not apply any taxes when you purchase a Gold Coin package. However, if you’re using a
Legendz referral code, any winnings you earn from gameplay may be subject to federal and state taxes. Always check your local tax laws to stay informed.
🤔 Am I taxed directly by Legendz?
No. Legendz do not tax you when you make a purchase or redemption at the site. But remember that purchases are fully optional, and as long as you meet the
Legendz age
requirement, you can enjoy the platform without any hidden charges.
😀 What state tax rate will be applied to my Legendz winnings?
That depends on the specific state you are playing from when using the
Legendz app. Make sure you fully check the state tax laws in your area before completing your tax returns.
