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  • DFSAccounting

    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 Rotogrinders 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, we can provide unparalleled tax and consulting services for casual players and seasoned DFS Pros alike, and we also offer free tax consultation for your DFS activities over at dfsaccounting.com

    This is our 4th year working with Rotogrinders and we are proud that so many of the RG staff and members use our annual tax services! We hope for another successful year helping the RG community again this tax season, and 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.

  • DFSAccounting

    @SkateFiend said...

    I downloaded the 1099 from the DK site. My question is somewhat related to timmytay1’s above – Is the amount in the other income section the total money I earned at DK, or is it the profit (meaning money I made minus entry fees)?

    Thanks

    To answer both of your questions, you are correct. The amount on your 1099-misc is netted with your entry fees. If you played on another site and had losses you can report them as an itemized deduction or as a business expense if you qualify as a business/ full time player.

  • tbird05

    @DFSAccounting said...

    That is a great question, with the IRS recently commenting on DFS winnings and considering it gambling winnings, you would record your Fanduel winnings as gambling winnings and draftkings losses. You can report it as a business but you need to review your playing style and see if it enables you to report as a business, ie. profit motive, amount invested (is it material to you), time invested (35+ a week) etc. You should also set you sessions based on your playing style as well. In this, case it looks like you set your session as a year long session.

    If he decides not to go the reporting as a business route, can he still net his FanDuel wins with DK losses? I think in the past we would just pay our taxes on the $13,000, despite actually being down $2,000 for the year. Has the IRS’s recent comments changed things?

  • SkateFiend

    I need some help reporting DFS winnings at Turbo Tax.

    I received a MISC 1099 from DK and put in the information in the wages and income section. They took out the tax I owe out of the refunds. But apparently Turbo Tax considers that as self employed business, and I even qualified for some tax breaks. And when I moved to my state tax Turbo Tax has my home address as my self employed business address and asks for additional info.

    I thought about reporting it as gambling, but….. I never received a W-2G. Did I do something wrong? Any help would be appreciated.

  • mambaland

    So according to the new law that starts next year any transactions that total 600 or more..NOT single transaction but total will generate a 1099? Is it considered goods and service when sites send you money? will it generate a tax form now? or did i read the entire thing wrong

  • monarch

    Anyone have an answer on this?

  • Pats7914

    • 74

      RG Overall Ranking

    • Ranked #98

      RG Tiered Ranking

    Just FYI for this thread. If the IRS audits you treating the whole gambling year as a session has ~0 chance of holding up. If DFS incomes is now considered gambling income the same will hold true for DFS, you would need to count your gross wins and deduct gross losses. There is leeway around sessions but you cannot just call a year a session, goes against ~ every IRS ruling ever

  • felixbb11

    Is there any benefit to reporting as a business if you had a net profit? Will the flax tax % (24%) be the same if you report it as a hobby?

  • DFSAccounting

    @felixbb11 said...

    Is there any benefit to reporting as a business if you had a net profit? Will the flax tax % (24%) be the same if you report it as a hobby?

    The benefits of the business are being able to deduct expenses (i.e. subscriptions, travel expenses) against the winnings/income. However, you would need to ensure that the DFS venture qualifies as a business under the IRS code.

  • yisman

    I have a call scheduled with DFSAccounting today.

    Draftkings reported the wrong information to the IRS (they claimed over 10 times the income I had) and now DK is refusing to help me.

    Every time I e-mail I get the copy/paste response:

    “Declaration and payment of all income taxes associated gaming winnings are the sole responsibility of the winner. All earnings are considered income and, as such, are taxed according to the applicable Federal, District, state and local laws. DraftKings cannot estimate your tax responsibility or answer questions about Federal, District, state or local exemptions, or tax calculations. You may want to consult a tax professional, government tax office, financial adviser or other appropriate professional for answers to your tax questions.”

  • wolfjb1

    Hey, DFS Accounting, I sent you a private message through RG. Can you check your in-box?

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