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  • pdidawg82

    SC World Cup Bracket Champion

    • Blogger of the Month

    I’m sure it’s been discussed before, if someone can link me I’d appreciate it: are payouts that are paid after midnight next Thursday counted for 2014 earnings, since they were joined then, or for 2015?

    Edit – bumped this thread for this year. Think it’s all still relevant.

  • sethayates

    So, assuming Draftkings follows the same rules as FanDuel is today’s College Football Super Booster the ultimate tax shield? A person could buy 20 entries for $1000 and reduce their tax liability for this year. Said person could then use those 20 entries to run several trains. The contest likely won’t pay out until next year so any winnings get carried forward. Fire up the trains boys. Choo Choo

  • pdidawg82

    SC World Cup Bracket Champion

    • Blogger of the Month

    You’re not reducing anything for this year. Those entry fees are earnings for this year … but any payouts for that tourney would be for next year… IF I’m understanding this correctly. (A big if.)

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @pdidawg82 said...

    A related question: am I understanding this correctly – that my current balance plus pending entries amount is basically what I should treat my year end balance as?

    Yes. Ending Balance = Current balance + pending entries + value of tickets in account.

  • sethayates

    @pdidawg82 said...

    You’re not reducing anything for this year. Those entry fees are earnings for this year … but any payouts for that tourney would be for next year… IF I’m understanding this correctly. (A big if.)

    Maybe I’m the one not understanding but wouldn’t anything entered tonight and not paid out reduce the amount reported on your 1099?

    Say for example I deposited $25 this year and won $1000. I withdrew $500 already and left $500 on the site. My account balance as of today (on the site) is $500. Couldn’t I put the whole $500 in play tonight so that at the end of this year my account balance is $0? That would make it look like I profited $475 for the year which I already withdrew ($500-$25).

    Basically, what I am asking is are they in fact counting entry fees from tonight as part of 2014 calculation but counting the winnings for those entries in 2015 because that is when they are settled.

  • uscbiggie

    Sorry for this dumb question, but will each site send me a 1099 for my NET winnings? this is the first year I’ve played and believe I had some net gain, but not sure how much. Thanks in advance.

  • einars

    @sethayates said...

    That would make it look like I profited $475 for the year which I already withdrew ($500-$25).

    i believe it is not considered spent (for the specific reason of your example) until settlement. so your $500 in entries would count as 2015 fees. otherwise FD could set up a week long tourny every year on NYE where everyone gets their buy in back at the end of the tourny and it would function as a perpetual tax evasion scheme

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @uscbiggie said...

    Sorry for this dumb question, but will each site send me a 1099 for my NET winnings? this is the first year I’ve played and believe I had some net gain, but not sure how much. Thanks in advance.

    Yes, you’ll receive 1099s from any site where you have net winnings in excess of $600.

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @sethayates said...

    Basically, what I am asking is are they in fact counting entry fees from tonight as part of 2014 calculation but counting the winnings for those entries in 2015 because that is when they are settled.

    No. Any contest entered today that settles in 2015 will impact your 2015 tax year.

  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    @sethayates said...

    So, assuming Draftkings follows the same rules as FanDuel is today’s College Football Super Booster the ultimate tax shield? A person could buy 20 entries for $1000 and reduce their tax liability for this year. Said person could then use those 20 entries to run several trains. The contest likely won’t pay out until next year so any winnings get carried forward. Fire up the trains boys. Choo Choo

    If this were true, people could always defer their tax liability by buying entries on December 31st that don’t settle until the following year in order to game the system.

    The entry fee must follow the settlement. if the contest settles in 2015, the entry fees don’t count until 2015 either. Any games that are still pending are still considered as part of your “ending balance” in 2014. It’s the only way to prevent gaming of the system (by the methods you accurately described).

  • skinnyskins

    NFL Feud of Champions ($100K) Winner

    Didn’t want to start a new forum and had a question myself…probably a dumb question but I’m asking it anyways. Is it your total winning that are taxable or only what you have withdrawn? Example say you hit $50,000 but only withdrew $30,000 for the year and the other 20k is still on your account to play would you claim $50,000 or just the $30,000?

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @skinnyskins said...

    Didn’t want to start a new forum and had a question myself…probably a dumb question but I’m asking it anyways. Is it your total winning that are taxable or only what you have withdrawn? Example say you hit $50,000 but only withdrew $30,000 for the year and the other 20k is still on your account to play would you claim $50,000 or just the $30,000?

    Total winnings without regard for whether or not they have been withdrawn.

  • ganondorf

    2015 WFBBC Finalist, 2015 PBC Finalist, 2014 FD NFL Survivor Finalist ($400k), 2014 NFL PBC Finalist, 2014 WFBC Finalist (4th),

    Most DFS sites will pay out the next day for contests. Just curious if contests on December 31st (tonight) will be included in this year’s taxes or next year’s for the 1099s the major sites send out. Anyone know?

  • uscbiggie

    Thanks Rotokevin, I appreciate it! – looks like I will be getting a 1099! (that’s a good thing)

  • buck1097

    Thanks to Rotogrinders writers (Hester8157,Scott121422) and the Rotogrinders CFB research page, I won an amount that requires a 1099 TAX from yesterdays games. The unfortunate thing was the last game was completed 10 minutes before midnight. Because of that i have to claim this on my 2014 income taxes. A good problem to have !!

  • LawnStar

    Pretty sure it comes down to the withdrawal date-

    Rotokev really nailed a lot of these questions and concerns last year… check this thread here:

    https://rotogrinders.com/threads/DFS_and_Taxes-225586?page=1

  • pdidawg82

    SC World Cup Bracket Champion

    • Blogger of the Month

    Bump since this should still all apply. Was getting ready to post this same question again this year.

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