Lose Money This March Madness? The IRS Still Wants Its Cut

Adam N. Michel

Millions of Americans will lose money this month. Some will drop $20 in the office March Madness pool. Others will wager on the ever-expanding number of betting apps. A few will win big. Most people will lose money. 

Under longstanding tax rules, gambling winnings are taxable income. If you hit it lucky in your office March Madness pool, the Internal Revenue Service (IRS) expects its cut. The tax code has historically allowed professional gamblers and taxpayer...