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There's something to be said about sportsbooks in general before talking about Pinnacle in particular: to protect themselves from big losses, bookmakers tend to limit the amount of money a bettor can wager on a certain event. Usually, it is as legal as any other type of sports betting in the country/state you're based in.
For many avid sports fans, a career as a professional sports bettor seems like the dream life. In other words, the magnitude of the event should not affect the size of your wager.
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One variation involves people using Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, to claim a credit based on income earned as an employee and not as a self-employed individual. These credits were available for self-employed individuals for 2020 and 2021 during the pandemic; they are not available for 2022 tax returns. A similar variation involves people making up fictional employees employed in their household and using Schedule H (Form 1040), Household Employment Taxes, to try claiming a refund based on false sick and family wages they never paid. The form is designed to report household employment taxes if a taxpayer hired someone to do household work and those wages were subject to Social Security, Medicare or FUTA taxes, or if the employer withheld federal income tax from those wages....
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