While everyone else is
bidding farewell to summer and heading back to school, I am jumping out of my
skin excited! I’m what you would call one of those insanely crazy football
fans. You know, the one who gets a lot of stares. August means one thing to me
- fantasy football. Time to review my picks and beat the boys at their own game!
Beating your friends in
fantasy football every year leaves one with many bragging rights (although, not
many friends). Just don’t forget to count your winnings at tax time – or those
friends may get the last laugh!
All gambling earnings are
considered taxable income by the IRS. To make sure that you are following IRS
guidelines in filing your earnings correctly, here are a few things you should
- Whether you have magically hit the lottery or
earned some extra cash from a workplace bet, you have to report ALL of your
gambling winnings on your tax return. This goes for non-cash prizes, too!
- Keep an eye out for Form W-2G in the mail
because you will most likely receive this from the payer of your winnings. A
copy of this goes to the IRS, as well, so be sure to include your earnings under
the “Other Income” line of your return. If you don’t receive this form, record
your earnings anyway.
- If you are down on your luck, gambling losses
can be deducted. This may prove to be confusing and difficult so it is best to
ask your tax
preparer to assist you.
all documentation of your gambling activities. Better to be safe than sorry!
See more information
regarding gambling earnings on IRS
Publication 525 or Publication
529. Or visit a local
Liberty Tax office and we’ll be glad to help you decipher the information.
Disclaimer: Every effort has been
taken to provide the most accurate and honest analysis of the tax information
provided in this blog. Please use your discretion before making any decisions
based on the information provided. This blog is not intended to be a substitute
for seeking professional tax advice based on your individual needs.