QUESTION:
How do I report my fantasy sports league winnings?
ANSWER:
With the Super Bowl over and March Madness in full swing, winning the betting pool means paying taxes. Gamblers must report all winnings as taxable income. That includes the fair market value of any prizes won, such as cars or trips. Generally, you’ll receive an IRS Form W-2G if your winnings are at least $600 and the payout is at least 300 times the amount of your wager.
If you itemize deductions on your taxes, you can deduct any gambling losses incurred during the year on Schedule A. But you are limited to deducting only to the extent you have winnings. So if you won $1,000 from your fantasy football team but lost $1,500 on your basketball brackets, you’ll only be able to deduct $1,000 of those losses.