You won! Now hand it over
As March Madness office pools and Internet gambling have soared in popularity, even many casual fans now have a stake in the outcome of the NCAA college basketball championship. But if your savvy bracket picks earn you a financial windfall, make sure you don’t draw a foul from the IRS.
Gambling winnings are taxable at your ordinary income tax rate. Yet nearly 60% of taxpayers said they would “not be very likely” to report their NCAA tournament winnings to the IRS, according to a new survey by H&R Block. Only 35% said they’re aware that they’re supposed to report those winnings, the survey found.
