INDUSTRY FORUM

Comments

  • 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.

  • ScuddyStud

    I just compared my 1099 to the number I calculate from the csv and they are showing me with $450 more net winnings than I calculate. I haven’t emailed support yet, but I’m going to have to.

  • LegiaWwa

    @Gazzola11 said...

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

    Nope, Yahoo does not issue 1099s

  • DFSAccounting

    yes you are correct to assume so. A w-9 needs to be filled out in order to receive a 1099-misc.

  • eruthruff

    @ScuddyStud said...

    I just compared my 1099 to the number I calculate from the csv and they are showing me with $450 more net winnings than I calculate. I haven’t emailed support yet, but I’m going to have to.

    By csv, do you mean list of all 2019 wagers downloaded from the contests / history page? Can you calculate yearly profits from that?

    I don’t think so because that sheet always shows the full entry amount, and doesn’t indicate whether it came from cash, fpp, or prize tickets (the latter two don’t really “count”). You also need to figure in what you earned in DK dollars from daily rewards and promos, and the csv doesn’t indicate that either. When you enter a contest, DK apparently has some way of specifying how many of those DK dollars came from “cash” vs. how many came from DK dollars earned during the year. But this doesn’t show up in the .csv file.

    I do suspect your 1099 is wrong, though, given mine was wrong. At the start of each year, I note the previous year’s final balance (after correcting for withdrawals, deposits, etc.) and then compare the difference between years. I believe that wins from contests starting in 2019 are counted against 2019, even if they finish in 2020.

  • Bbondsmvp

    Mine was also incorrect, emailed support, they escalated it. No one ever got back to me.

  • Skillbert

    How do we claim our yahoo dfs winnings without a 1099?

  • tmarohl

    Has anyone received a 1099 from DK or FD yet?

  • TheDataDetective

    • Blogger of the Month

    @tmarohl said...

    Has anyone received a 1099 from DK or FD yet?

    DK support told me that all of the tax docs have been released by now. They are available via the Document Center in the app.

  • sgogineni

    • 93

      RG Overall Ranking

    • Ranked #62

      RG Tiered Ranking

    My 1099 numbers didn’t match up. So, I reached out to support and the only numbers i got were entry fee totals winnings totals and bonus totals. They don’t match up with what I calculated from the entry history csv file. I asked for a transaction file with all contests, bonuses, DK cash etc and the reply I got was shocking

    “We do not have a CSV we are able to provide you that breaks this down per contest.”

    This is just ridiculous not to provide the file they used for the calculations!!

  • eruthruff

    My case was escalated a week ago, but they haven’t gotten back to me.

  • SkateFiend

    Barring something unforeseeable, I’ll complete the ironman challenge for NHL And NBA this season. But the thought of DK or the IRS calculating the thousands of crowns as winnings (even if I use them all in contests and fail to win any money) is giving me pause. No one seems to know how bonuses are taxed or if they’re taxed at all. Vouchers and coupons are generally not taxed.

  • craftylefty

    • 396

      RG Overall Ranking

    I am very confused about bonuses/crowns being added on as profit. I use those to play and lose, how do they count as profit? Am I missing something that makes it seems like you should not use crowns/bonuses if this is how they are going to be calculated. I was a hoarder of crowns (not sure why I didn’t use them up once I got them) up until this year and I started to use them. I was shocked when I looked at my 1099 compared to my Rototracker results. There was a significant difference because of the crowns/bonuses are being calculated.

    If you use the crowns/bonuses, can you deduct the loses to have an accurate description of your wins/loses for the year if you file as a business?

  • drewcrawford03

    • 2019 FanDuel FantaSea Finalist

    • 984

      RG Overall Ranking

    • 2018 FanDuel WFFC Finalist

    Same here, I will not be using them in the future because of this stupid calculation. Hopefully you get a good answer here, but I’ve been told there’s no way to avoid that part of the formula.

  • drewcrawford03

    • 2019 FanDuel FantaSea Finalist

    • 984

      RG Overall Ranking

    • 2018 FanDuel WFFC Finalist

    @sgogineni said...

    My 1099 numbers didn’t match up. So, I reached out to support and the only numbers i got were entry fee totals winnings totals and bonus totals. They don’t match up with what I calculated from the entry history csv file. I asked for a transaction file with all contests, bonuses, DK cash etc and the reply I got was shocking

    “We do not have a CSV we are able to provide you that breaks this down per contest.”

    This is just ridiculous not to provide the file they used for the calculations!!

    And unfortunately we are stuck being forced to report exactly what they reported to the IRS. Even if it is obviously incorrect or ridiculous or both.

  • craftylefty

    • 396

      RG Overall Ranking

    So I am not being dense and missing something here because I have like a 30k difference between what I have tracked based off of history files and what is being reported on the 1099. It is just very shocking the difference.

  • EviLAvengeR

    Noob betting question. When you win a bet its wager+winnings=total payout. Is the wager included as taxable winnings or do you subtract the wagers and only use the actual winnings portion of the total payout?

  • DFSAccounting

    @Skillbert said...

    How do we claim our yahoo dfs winnings without a 1099?

    If your DFS venture is considered a hobby, you would report the earnings on your 1040 line 7a

  • DFSAccounting

    @tmarohl said...

    Has anyone received a 1099 from DK or FD yet?

    Yes. People have received 1099s.

  • DFSAccounting

    @EviLAvengeR said...

    Noob betting question. When you win a bet its wager+winnings=total payout. Is the wager included as taxable winnings or do you subtract the wagers and only use the actual winnings portion of the total payout?

    Only the total winnings should be reported as income.

  • eruthruff

    I’m not sure, but I believe that tickets won and points earned do not count directly towards “winnings”. But if you enter a $10 contest using a ticket and win $20, this is considered a profit of $20 (not a profit of $10). If you enter a $10 contest using points/ticket and lose, it’s counted as $0 profit (not a $10 loss). That makes sense to me. I would hope that DK is doing these calculations correctly.

    The other complication is how they account for DK dollars earned. They appear to have some way to say that when you enter a $100 contest, X of it came from DK dollars earned, and 100-X came from “cash”. That would partly explain why their estimate of your total cash entries for 2019 is much lower than that from the CSV. But they won’t tell us how they calculate these things and they won’t show us the spreadsheets. Lack of transparency.

    I suspect that they changed their calculations this year and screwed it up, because (at least for me) it was correct last year.

  • craftylefty

    • 396

      RG Overall Ranking

    @eruthruff said...

    I’m not sure, but I believe that tickets won and points earned do not count directly towards “winnings”. But if you enter a $10 contest using a ticket and win $20, this is considered a profit of $20 (not a profit of $10). If you enter a $10 contest using points/ticket and lose, it’s counted as $0 profit (not a $10 loss). That makes sense to me. I would hope that DK is doing these calculations correctly.

    The other complication is how they account for DK dollars earned. They appear to have some way to say that when you enter a $100 contest, X of it came from DK dollars earned, and 100-X came from “cash”. That would partly explain why their estimate of your total cash entries for 2019 is much lower than that from the CSV. But they won’t tell us how they calculate these things and they won’t show us the spreadsheets. Lack of transparency.

    I suspect that they changed their calculations this year and screwed it up, because (at least for me) it was correct last year.

    I don’t remember things being this far off, if at all, from DFS Analyzer or Rototracker when I double checked the 1099. I don’t like that they are providing a History CVS that is incorrect and they won’t give you document that they calculated the 1099 from.

  • SkateFiend

    @eruthruff said...

    I’m not sure, but I believe that tickets won and points earned do not count directly towards “winnings”. But if you enter a $10 contest using a ticket and win $20, this is considered a profit of $20 (not a profit of $10). If you enter a $10 contest using points/ticket and lose, it’s counted as $0 profit (not a $10 loss). That makes sense to me. I would hope that DK is doing these calculations correctly.

    The other complication is how they account for DK dollars earned. They appear to have some way to say that when you enter a $100 contest, X of it came from DK dollars earned, and 100-X came from “cash”. That would partly explain why their estimate of your total cash entries for 2019 is much lower than that from the CSV. But they won’t tell us how they calculate these things and they won’t show us the spreadsheets. Lack of transparency.

    I suspect that they changed their calculations this year and screwed it up, because (at least for me) it was correct last year.

    This is apparently how net profit (I would get taxed for profits of 600 dollars or more) is calculated.

    net profit = winnings – entry fees + bonuses

    That seems to indicate that if I made 599 dollars in profit after accounting for entry fees for the year, I will be still be taxed if I had around 600 DK crowns. That amount is about worth about dollar in value, and that would be added to the 599 dollars and push my winnings over the threshold.

    So the question is, are crowns considered as entry fees when I use them in contests? If not, then that means whatever dollar value of the crowns I achieve are automatically and permanently added onto the winnings, even though they have no cash value.

    I can get 25k crowns by completing the ironman challege, which is equivalent of about 50 dollars if I’m not mistaken. If you you grind out dime games for 3,4 sports you could have 200 dollars in crown. We could be taxed on those, even if we use them in contests and lose money on it?

  • EviLAvengeR

    @DFSAccounting said...

    Only the total winnings should be reported as income.

    So am i understanding correctly for example
    wager 100
    win 100
    payout 200
    You only count the “win 100” as reportable income?

  • craftylefty

    • 396

      RG Overall Ranking

    So the CVS/Excel/History that you can download from Draftkings does not match up with the CVS/Excel that Draftkings is using to calculate your 1099. When you request that document, Draftkings only provides the totals and not the document so you have no way verifying the information is correct.

    I simply can not remember 1099s being calculated this way in the past. I don’t remember any one questioning 1099s in this manner until this year. I can’t remember any one chatting in any discords or slack chats that I am involved with discussing this at all.

    I could be wrong but it feels like the goal posts were moved without telling anyone in regard to how 1099s are calculated.

    I just feel blindsided because I was tracking my winnings through out the year and now I have a tax obligation that is significantly more than I was anticipating.

  • Wrat08

    I’m in a similar boat as everyone else. My CSV file that can be downloaded to show my history shows me with about 14% less in winnings than the 1099 form provided. Seems like the way they handle crowns (and possibly tickets won?) is very questionable.

    I wish we had clarity on when crowns/tickets were used in any calculations. Extreme example but if I was sitting on $599.99 in net profit on 12/31 would I go over the $600 threshold by simply accepting a daily sign in bonus of crowns?

  • X Unread Thread
  • X Thread with New Replies*
  • *Jumps to your first unread reply

Subforum Index

RotoGrinders.com is the home of the daily fantasy sports community. Our content, rankings, member blogs, promotions and forum discussion all cater to the players that like to create a new fantasy team every day of the week.

Bet with your head, not over it!
Gambling Problem? Call 1-800-Gambler