Those March Madness Winning Bets Become Taxable Income

by Ken Berry | Mar 07, 2018   ()

March Madness is here. This is the time of year when employees, friends and family members participate in pools based on the bracket parings for the NCAA basketball tournament. While most brackets are busted early on — the tournament has a rich history of upsets — some prescient “brackentologists” walk away winners.

But there’s more to the story. Technically, March Madness pools are a form of gambling, subject to the usual tax rules for these activities. Therefore, if you win, you’re required to report the taxable income on your federal tax return, although it’s often ignored. And this can also lead to state income tax complications.

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Source: Accounting Web
Source: Accounting Web

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