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In 2024, I had a lucky year with sports betting. I had been placing small bets here and there, but 7️⃣ I never imagined I would win so much. When I started checking my winnings at the end of the year, 7️⃣ I was surprised to see that I had won over 40 thousand reais.
I had heard that people who earn more 7️⃣ than 40 thousand reais from sports betting should declare their winnings to the Federal Revenue. At first, I was reluctant 7️⃣ to declare, but after doing some research, I found out that the penalties for not declaring can be severe. So, 7️⃣ I decided to follow the rules and declare my winnings.
The first step in declaring my winnings was to determine if 7️⃣ I needed to pay taxes. I learned that if my winnings were below 40 thousand reais, I did not need 7️⃣ to declare or pay taxes. However, since I had won more than 40 thousand reais, I needed to declare and 7️⃣ pay taxes.
I then researched how to declare my winnings and found out that I had to report the income on 7️⃣ the Declaration of Individual Income (DIRPF) form, specifically on the "Exclusive and Definitive Income" line, identified as line 12, Other. 7️⃣ I had to provide the name and CNPJ of the payer of the value, which is the betting platform, along 7️⃣ with the description and amount.
After filling out the form, I calculated the amount of taxes I needed to pay. The 7️⃣ tax rate for winnings from sports betting is 30%. This may seem high, but it simplifies the process of declaring, 7️⃣ as the betting platform already retained 30% of my winnings as Imposto de Renda.
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