Q: NC shot down a 2017 bill to legalize and tax Daily Fantasy Sports winnnings. Do i have to pay tax on winnings then?
I havent been able to get a clear answer on this. If DFS is not regulated and taxed in NC then i shouldn't have to pay state taxes on my yearly winnings right? Only Federal taxes. If so what is it taxed under and at what %
A: Wrong. The income is taxable, whether legal or not. Same as for income from embezzlement, illegal drug sales, or racketeering.
Bruce Alexander Minnick agrees with this answer
A: Rather than focus on saving tax dollars you should notice that--according to you--NC did NOT legalize DFS--which means you might not have to worry about paying taxes on your illegal winnings.
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