Looking for some help here. I had lunch with my accountant today and we noticed some irregularities on the value live finals are being given in relation to entry fees. I was fortunate enough to win a ticket to the Pebble Beach golf live final this year. The entry fee for the qualifier was $1500 and I had to beat out 16 other entrants to win the trip. I was able to do that and won a total package valued at $20,638. This would be considered taxable income.
After looking at my contest history, I saw the entry fee for the tournament listed at $11,538. DraftKings sends 1099s at the end of the year for winnings – entry fees. My concern here is that it will appear that I was given an additional $9100 ($20,638-$11,538) for the trip when they send that form at the end of the year. 16 entrants at $1500 each is $24,000. We already paid for the trip on the front end and should not have to cover this tax liability.
I checked into my previous trip details I won on FanDuel and that is not the policy there. This additional $9100 in taxable income really ruins the value of the trip and live finals for me in general. Qualifying is difficult enough, but adding in a tax burden has soured me on the idea of trying to qualify in the future. Can anyone confirm?