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  • SmartWater

    Marketing and Social Media Manager

    Hello Grinders!

    One of the most important days of the DFS year is nearly upon us: the Super Bowl? Nope – the tax deadline!

    We’ve once again teamed up with the best in the business to help make sure you have everything in order for the current tax year.

    DFS Accounting Services, LLC has over 30 years of collective accounting experience and are a registered and licensed CPA firm with the AICPA and IL CPA Society. In short, they can provide unparalleled tax and consulting services for casual players and seasoned DFS Pros alike. They offer free tax consultation for your DFS activities over at dfsaccounting.com

    This is our 3rd year working with DFS Accounting and many of our own staff use them for their annual tax services. If you have any questions, this is your chance to ask away in this year’s Q&A thread!

    DFSAS Disclaimer: DFS Accounting, LLC are Certified Public Accountants licensed by the AICPA and State of Illinois. Any information provided is for informational purposes only and is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant, CPA, lawyer or other competent financial professional. Information posted by DFS Accounting, LLC on RotoGrinders or any other media forum does not constitute an accountant-client relationship. At your request, DFS Accounting, LLC can send an engagement letter, which outlines their responsibilities provided under their engagements.

  • Jeezylives

    @ryan7962 said...

    Well seems like I’m screwed if I had 1200 in winnings but 3k in losses I still get a 1099 form for winning 1200 but lost 3k

    I am have interpreted..that if you had 3k in losses you must have had 3k in entry fees..thus 1200-3000=1800 in losses and not 600 or more in winnings..am I wrong?

    Math is hard for me

  • Jeezylives

    So when I read this on turbo tax…
    Fantasy sports organizers must figure out players’ net profits in order to determine who gets 1099 forms. They use a formula to determine when a player hits the $600 level: Prizes won minus entry fees plus bonuses = net profit.
    Another way to calculate this is:
    (Withdrawals + Year End Account Balance) – (Deposits – Beginning Year Account Balance) = net profits.
    Is this accurate? In other words, if my totals to the above formulas are less than 600 on FD and DK, I don’t need to wait around on 1099’s because they are coming? This seems conflicting to what I am hearing some other grinders saying on the forums

    Can someone who knows what they are talking about speak to this directly?

  • DFSAccounting

    @Jeezylives said...

    So when I read this on turbo tax…

    Fantasy sports organizers must figure out players’ net profits in order to determine who gets 1099 forms. They use a formula to determine when a player hits the $600 level: Prizes won minus entry fees plus bonuses = net profit.

    Another way to calculate this is:

    (Withdrawals + Year End Account Balance) – (Deposits – Beginning Year Account Balance) = net profits.

    Is this accurate? In other words, if my totals to the above formulas are less than 600 on FD and DK, I don’t need to wait around on 1099’s because they are coming? This seems conflicting to what I am hearing some other grinders saying on the forums.

    It is our understanding that the 1099 is calculated by taking the net winnings for the year (i.e. winning less entry fees).

  • DFSAccounting

    @ryan7962 said...

    Can someone explain how fanduel and dk does their 1099? I’m going to guess or assume let’s say I won 1200 for instance that I deposited let’s make up a number 10k and my total cash outs were 11.2k so that’s how they get i was up 1200?

    Not necessarily. If you had money in your account from a prior year that you paid tax on already, that is not included in the 1099.

  • DFSAccounting

    @leib0039 said...

    has 0 to do with depositing or withdrawing. Total winnings – Total Entry fees If that is over $600 you get a W2. Pretty simple

    That is our understanding, yes. You should not be taxed on your deposits. You are only taxed on your withdrawals to the extent you had net winnings during the year.

  • DFSAccounting

    @ryan7962 said...

    Well seems like I’m screwed if I had 1200 in winnings but 3k in losses I still get a 1099 form for winning 1200 but lost 3k

    That is not our understanding of how the 1099 is calculated. If you had $1.2K in winnings but $3K in losses, then you would not get a 1099 (i.e. your winnings are less than your entry fees)

  • DFSAccounting

    @Jeezylives said...

    I am have interpreted..that if you had 3k in losses you must have had 3k in entry fees..thus 1200-3000=1800 in losses and not 600 or more in winnings..am I wrong?

    Math is hard for me

    Yes. This is our understanding of how DK/FD calculate the 1099s.

  • Jeezylives

    Thank you

  • drewcrawford03

    • 2019 FanDuel FantaSea Finalist

    • 984

      RG Overall Ranking

    • 2018 FanDuel WFFC Finalist

    @DFSAccounting said...

    It is our understanding that the 1099 is calculated by taking the net winnings for the year (i.e. winning less entry fees).

    “i.e. winning less entry fees”

    PLUS bonuses

  • badatwinning

    I wonder if your transaction history available on Draftkings is what is used for your 1099. My is currently missing several random weeks when I go look through it.

  • TheDataDetective

    • Blogger of the Month

    It has now been one month since I requested DK Sportsbook to send me my 2019 transaction history (including bonuses) and still no response. How on Earth are they going to be able to generate accurate 1099’s etc if this is such a big problem for them? Scary!

  • DFSAccounting

    @badatwinning said...

    I wonder if your transaction history available on Draftkings is what is used for your 1099. My is currently missing several random weeks when I go look through it.

    Yes. We’ve found, at times, that the CSV used to calculate the 1099 is not the same as the one a person can download online. Sometimes this is because the CSV in a person’s account has voids or cancelled contests.

  • dbrown0147

    @DFSAccounting

    I wanted to provide my situation and check it against what other posts I’ve read.

    I would in this scenario take the standard deduction

    DK sportsbook – net winner. Did not meet the threshold for reporting by win of 600$ or 300 to 1 but net winnings around 3k

    DK DFS – will not receive a tax form, net loser per how the sites calculate it

    FD DFS – will not receive a tax form, net loser per how the sites calculate it

    Should I report income from gambling winnings, my losses do not exceed standard deduction and not report winnings from DFS because I am not a net winner and can prove that?

  • ChaosM83

    • 444

      RG Overall Ranking

    If I made a withdraw during the year and had taxes with held from that deposit, is there a form I should have received for this?

  • cjrswish

    Has anybody received their 1099 from DK yet? Still waiting on mine.

  • cwilley

    • 215

      RG Overall Ranking

    • Ranked #8

      RG Tiered Ranking

    Mine finally showed up today in the document center.

  • badatwinning

    Looks like mine did too. It’s waaay too round of a number to be the exact right amount, given all my entries into .50-$3 contests (ones and tens are zeros somehow), but…I’ll take it, because I think it’s a couple thousand shy of where I estimated.

  • DFSAccounting

    @ChaosM83 said...

    If I made a withdraw during the year and had taxes with held from that deposit, is there a form I should have received for this?

    yes, you will receive a 1099-misc that details your net winnings and your federal withholdings. hopefully you receive that within the coming week.

  • DFSAccounting

    yes, you should report your gambling winnings. Since you had a net loss in DFS, you do not need to report. The irs will compare the documents they received to your tax return and make sure everything is reported. In your situation, no documents ie. W-2G or 1099-misc are subject to reporting.

  • Pats7914

    • 74

      RG Overall Ranking

    • Ranked #98

      RG Tiered Ranking

    Have to report, but cant report gambling as net winnings, have to report gross and then deduct losses if you arent taking the standard deduction.

  • Cincinnatibuck

    Has anyone ever challenged DK for the amount on the 1099-MISC you received? I don’t think mine is correct. Will they send you the entire year transactions?

  • Gazzola11

    Does Yahoo not Issue a 1099? I haven’t received one yet.

  • eruthruff

    @Cincinnatibuck said...

    Has anyone ever challenged DK for the amount on the 1099-MISC you received? I don’t think mine is correct. Will they send you the entire year transactions?

    Mine seems to also be wrong…off by over $500. Ugh. Can anyone advise me on how to formally check their math? I have some numbers written down at end of year, but I guess I need to send them better proof than that.

    I already emailed them and they sent me total winnings -. total entry fees plus “bonuses”.

    To check their math, I downloaded my transactions under the contest page. They have the winnings exactly right. But the entry fees are too low. Part of the discrepancy, I believe, occurs because they subtract from your entiry fees any DK dollars you earned from missions promotions, and deposit bonusses. It looks like I can get those from the transaction history link under the Accont Information page. But there are hundreds and hundreds of transactions and there’s no way to just download them. It’s also difficult to copy and paste. I can filter by type, but it’s still pages and pages. Oh, I suppose I could ask them to send it to me in Excel format.

  • TheDataDetective

    • Blogger of the Month

    When I go to FanDuel’s tax info page, under the “Fantasy” section there’s a link for filling out a W-9 (to provide SS number). Am I correct to assume that if they needed this for 2019 tax reporting I would have been notified via email or some other channel?

  • eruthruff

    The DK staff have not been able to help me. They seem dismissive because they can’t conceive that DK could make a mistake and maybe don’t really understand the calculations. So maybe I can ask the clever people here….

    The DK entry fees listed on the contest entry spreadsheet don’t indicate the source of the funds (cash vs. DK dollars vs. tickets). So you can’t even use that to verify your 1099. But the total entry fees should be the sum of cash, DK dollars, and prize ticket entries. Is that correct? For me, the numbers don’t add up. DK support gave me the breakdown of cash, DK dollars and prize tickets, but it’s quite a bit less than the total entry fees. So it seems that at least one of the numbers is wrong. Or my equation (total entry fees = cash + DK dollars + tickets) is wrong.

    I’m very curious whether others also have seemingly erroneous 1099’s or if it’s just me and CincinattiBuck. Maybe people just haven’t done their taxes yet? Or they don’t double-check them? Or they aren’t looking at this forum?

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