Earning interest for amount meant for payment of future obligation is a smart move and a sound advice. Some "finance guru" would even charge $ for that piece of knowledge hehe. Do you not make adjustments on how much you set aside for taxes? I thought gambling losses are not deductible based on your post but it is when I checked.
Yeah so gambling losses are deducible at least in my state. So if I had a losing 2 week session, then I would take 30% of those loses out of my savings account.
So yeah the basic idea is, put 15% of the prior year to start the 4%APY on a larger dollar amount. Once that 15% is your current tax liability you can start putting away 30% of your bi weekly profit into it.
Earning upto $100k in gambling per year is a good move and that means that you are really a good gambler with a profitable history. Saving part of the profits for tax payment is also a good way for anyone that want to save something for a better time. Gambling can be very challenging majorly when we are not making the kind of profits that we intend to make from month to month and year to year. I don't know if op do incur loses maybe in a role in weeks or months but anyhow, it is good for us to keep some savings so that we don't start borrowing when we start having a bad day.
Yeah so the idea is to "tax plan", but like you said you may not make as much as you did the previous year which is fine because the savings account money is yours! Some other people will buy short term bonds like 3-6 months and get 5% APY. (US tres)
I limit my risk with sportsbetting by hedging and arbitraging, so I have not had a losing month. Because of site limits I may not make $100k+ this year, but am still implementing the same tax planning strategy.
* FYI I only use regulated sportsbooks in the US that are available in my state, and do not use crypto sports sites.
