How are winnings from FanDuel taxed?

Winnings from FanDuel or any other fantasy sports platforms are considered taxable income by the United States Internal Revenue Service (IRS). Individuals who earn more than $600 in a calendar year from FanDuel will receive a Form 1099-MISC detailing their winnings which must be reported on their tax return. The standard federal income tax rates apply, and tax liability depends on the total income and tax bracket of the individual. Additionally, some states may impose their own taxes on gambling winnings, so it is important to consider state tax laws as well. It is the responsibility of the taxpayer to report any earnings from FanDuel and pay appropriate taxes, even if they do not receive a Form 1099-MISC due to winnings being below the reporting threshold.