The tax service crafty points out that although fantasy sports is not gambling however it is could still be categorized as hobby income. This miscellaneous incomes is still income and thus the IRS wants a piece of it.
Players winnings of $600 should receive the 1099-MISC form and so will the IRS. H&R Block also advises though to track winnings even though they do not meet the $600 limit.
Expenses for fantasy sports players in this hobby are also eligible to deduct expenses. Tax player can deduct expenses such as entrance fees according to H&R Block. However, keep in mind that the rules change if fantasy sports is a business rather than the hobby category. In addition, filers will also need to itemize their deductions
As always please consult your tax adviser for definitive advice on taxes, and proper forms for the IRS to report.
