TAX TUNE UP 007: March Madness and the IRS

The IRS taxes gambling profits, but they still take a loss for March Madness.

Key Takeaways:

[:22] The NCAA’s college basketball tournament, March Madness, has become an unofficial national holiday season.

[1:02] College basketball players don’t get paid, but the average salary in the NBA tops $5,000,000.

[1:26] The IRS cashes in on March Madness through gambling.

[2:01] Gambling winnings are taxable, and gambling losses are deductible — but only to the extent of gambling winnings.

[2:40] One research firm estimates that March Madness costs the economy $1.8 billion in lost productivity.

[3:47] There’s not a lot of planning we can do for March Madness windfalls, but what we can plan on is playing hard to help you keep your hard-won money.