Office pools, fantasy football, that lucky pull in a Vegas slot machine — your windfall may or may not be exactly legal, but it is taxable.
The humble office pool is illegal in most states, but law enforcement usually ignores it. But the IRS doesn't. If you itemize, you must report the income. On the other hand, if you itemize, you can deduct losses.
In states where fantasy football is legal, any winnings should be treated as hobby income. Legal or not, the IRS expects you to report income from winnings. If you itemize, you can deduct entrance fees if those fees exceed 2 percent of your adjusted gross income, according to the IRS.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.