Fanduel taxes

Daily fantasy sports taxes

Just how Much Tax Should I Pay On My Fantasy Football Winnings?

Fantasy sports leagues are booming, with the estimated 41 million players this past year in Canada and the United States, based on the Fantasy Sports Trade Association.

The average U.S. devotee of sports fantasy leagues spends around nine hours each week on their team. Fantasy sports players additionally spend an average in league related prices, the trade group says.

Football season is over, but in the event you're lucky, you might have walked away with a few hundred or even several thousand dollars out of your fantasy football league.

How much tax you must pay in your fantasy football winnings

If you are just playing and having fun, and you aren't winning money, there is no federal income to report. Without any income, there are not any expenses that are deductible.

But even in the event you didn't wind up at the season's end, you may have had winnings along the way--in games that are specific, for example--that you used to pay fees related to the fantasy league. Make sure to print out your yearly summary of winnings and charges from club or each site by which you participate. Those reports will reveal your expenditures, when you file your taxes and you'll have the ability to work with those on your tax return.

It is not unlikely that a 1099 MISC is will be issued for those (phantom) winnings. Report the income on line 21 of the long variant.

What about the expenses connected with your fantasy league? You might be able to deduct them when you pay your taxes, but there are several limitations:

You must itemize your deductions so as to report your expenses at all (on Program A). However, you get no benefit out of your prices and outlays, in case your itemized deductions are not higher than your standard deduction.

You could only deduct the expenses up to the total amount of your winnings.

This really is the number on the bottom of page 1 of Form 1040.

Exactly what does that mean in amounts?

Let's say, for example, that you have been playing all season, along with your winnings are $1,200. You add that to your other income of $50, 000 your AGI is $51,200.For more info visit taxes football

A house is owned by you, and that means you have sufficient expenses to itemize. You spent during the year on a number of fees, memberships, t-shirts, fan swag, etc. about $1,500 However, since you only won $1,200, that is all you can deduct on Schedule A. Next, reduce your $1,200 allowable tax write-off by 2 percent of your AGI, or $51,200. That is $1,024, bringing your allowable itemized deduction that is net to $176 ($1,200 - $1,024).

You are still going to pay tax on $1,024 worth, while you spent more than you won.

Before you sign up for the next fantasy sports league, make sure you test the rules in your state to discover how these sports are regulated. Keep an archive of how much you really spend and how much you really win, in case you're in the clear. This will make things simpler come tax time.