The short answer to your question is no, you don't need to report your Fantasy Football income (or pay taxes on it) in Massachusetts. Don't bother to file a state tax return there. As Texas has no personal income tax system, you don't need to declare, report, or file any tax returns there either . . . either for Fantasy Football income or any other personal income. A more complete answer to your question follows.
Fantasy Football (and such similar activities) is generally considered by most tax professionals to be a hobby activity, not a business, and not gambling income, unless certain specific criteria are met. As such, in TurboTax, you'll most likely want to enter your Fantasy Football winnings as hobby income, and in the appropriate place in the program.
Losses (or costs and expenses) of playing Fantasy Football may be tax deductible too (up to the amount of your winnings), if you can itemize your deductions and not take the standard deduction, as more than 2 in 3 taxpayers do. For reference, in 2016 a single person under age 65 has a standard deduction of $6,300. So, in order to itemize deductions, this same person would need to list combined total tax deductions in a greater amount than that in order to actually benefit.
Now then, with Fantasy Football (i.e., hobby income), you can make your mechanical data entry in TurboTax by navigating to the hobby income and expenses sub-interview. The easy way to do that is to locate the Find / Search box in your open TurboTax program and enter the exact search term "hobby income, loss" and then click the button. A Jump To link should then appear beneath, and if you click that you'll be taken to the correct place in the program. Please see the attached screen-capture image below for a visual guide (simply click to enlarge).
For a highly technical (although accurate) discussion of how Fantasy Football is taxed, you can also read the following relevant article from the professional trade publication (the) Journal of Accounting. Here is the link:
http://www.journalofaccountancy.com/newsletters/2016/feb/how-to-report-fantasy-football-winnings.htm...
In conclusion, Fantasy Football income (the money you make from playing) is taxable at the federal level, by the IRS. But it need not be reported to Massachusetts, and so you don't need to file a personal income tax return there. As a Texas resident, with no state personal income tax system, you don't need to file a personal income tax return there either.
If you have further
questions, encounter any difficulties, or just want to speak with a live tax
expert who can walk you through your TurboTax entries (including the ability to
screen-share with your computer), please feel free to contact us. We
would be happy to help you (and as a paying customer, the call is free to
you). Here is a link where you can create a support ticket and reach us:
https://support.turbotax.intuit.com/contact/
Thank you for asking this important question.
