Giant Upset, NY Wins Super Bowl

Talk about pigskin payday! The New York Giants defied the odds last night and pulled a 17-14 Super Bowl upset win over the New England Patriots, finally giving New Yorkers a chance to regain the upper hand in the heated Boston-New York sports rivalry. And no one was probably more stunned by the Giants’ victory than the odds-makers. After pulling off one of the biggest upsets in Super Bowl history the Giants’ win has many New York fans suddenly seeing green.

The Super Bowl is the biggest one-day sports betting event of the year and Super Bowl XLII was no exception According to Las Vegas insiders, the Giants win was the worst Super Bowl result ever for sports books: who stood to pay out nearly $12 for every $1 bet for the Giants.

So what should you do if you find yourself with a sudden financial windfall? If you won big in Vegas last night your windfall is taxed like regular income, both on your Federal and State taxes. “If you win $10,000 bucks from bidding on the Super Bowl, you’re going to get your money,” says Allan L. Ratafia, a Certified Public Accountant in New York. “But they’ll ask for your identification, social security number and then will issue you a 1099 form to fill out on the spot.” A copy of the 1099, the form typically used to report income other than salary, is then sent directly to the Internal Revenue Service.

Your winnings are not yours alone. They also belong to the government and are subject to taxation “at the highest rate,” says John Baiardi, CPA and Tax Managing Partner for New York based Mitchell & Titus. “So depending on your tax bracket you’ll get taxed 10 to 15 to 35% for federal, and then it’s subject to state.” Once taxes are resolved, it might be tempting to splurge on a vacation or luxury item. “I’d advise paying off debt,” says Baiardi. “Or ask yourself what your number one financial goal is. It could be buying a house, and the money could help you start building up enough capital to do something like that.”