Winning The March Madness Office Pool Leads to Tax Liability
Winning the office pool this March for the NCAA Tournament is something that needs to be claimed on your taxes as a gambling win. Luckily you can offset the win with any gambling loses that you had during the year. Keep track of your loses so you do not need to pay taxes this year on the gain. Winning the brackets is never easy but in case you have the best one in your office, keep some things in mind.
Winnings are taxable and if you won a decent amount at a casino you would know when you got your 1099MISC or W2G tax income form. The list of things you can win gambling includes horse races, raffles, lotteries, and jackpots for cash, prizes, vacations, and/or cars. The good news is you can offset the wins with loses.
On your IRS Schedule A you can itemize loses that you had gambling. You can not take the loses against normal income but you can take them against gambling winnings. Check your state also as they may have a similar rule to the federal law.
Gambling and Taxes with Gambling Author Jean Scott