INDUSTRY FORUM

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  • DFSAccounting

    Hello Grinders!

    As the Official DFS Tax Partners of RotoGrinders , we here at DFS Accounting Services, LLC would like to take a moment to introduce ourselves. We are a consulting and advisory firm with 30+ years of collective accounting experience and are also a registered and licensed CPA firm with the AICPA and IL CPA Society. Our focus is on providing unparalleled tax and consulting services to the casual and professional Daily Fantasy Sports (DFS) Player. We also offer “free tax consultation on your DFS activities.”: dfsaccounting.com

    We aim to provide the RG Community with top-notch service for a 2nd year in a row!

    DFS is an exciting and competitive industry that offers big payouts and we understand the allure of playing DFS because we play it ourselves! With big winnings comes big tax responsibilities, and that’s where we come in!

    Now with that said, let’s get the DFS Tax Q&A going… please ask away!

    DFSAS Disclaimer: We 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 us on RotoGrinders or any other media forum does not constitute an accountant-client relationship. At your request, we can send an engagement letter, which outlines our responsibilities provided under our engagements.

    *EDIT: There is a new DFS tax Q&A thread for 2019/2020. Please visit the new thread and ask any tax related questions you may have there.

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  • Galante118

    • Blogger of the Month

    If you itemize your deductions and file this as a hobby, can you still include things like content subscriptions, TV packages, internet etc… as deductions?

  • mambaland

    @DFSAccounting said...

    Just to confirm, you are asking that if you win a payout over say 20 years, can you deduct loss tickets in the current year against the 20 year payout? Correct?

    yes so each year they pay you $50k so it would not be hard to come up with that in losses via old tickets or horse tickets etc…this is assuming they take taxes from the 50k each year before they send it it or if they send it then you pay taxes…not sure how it works

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    • Last Updated 1 year ago
  • TheDataDetective

    • Blogger of the Month

    Does anyone know if DK Sportsbook and FD Sportsbook generate tax forms on the fly throughout the year (e.g. W-2G’s for bets that exceed the reporting threshold as these bets are settled) or do they instead wait until the end of the tax year and send them all at once?

  • Grunz75

    Just want to confirm, nobody has received their 1099 from DK yet? I was just wondering if I missed it in the mail.

  • wafic

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    @mambaland said...

    or just bag it they will never know..not financial advice either LOL

    Lol exactly. Not financial advice.

  • wafic

    • 225

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    @Grunz75 said...

    Just want to confirm, nobody has received their 1099 from DK yet? I was just wondering if I missed it in the mail.

    Just download it directly from the website. They don’t actually mail one.

  • mambaland

    @wafic said...

    Lol exactly. Not financial advice.

    that is what i did

  • DFSAccounting

    @Galante118 said...

    If you itemize your deductions and file this as a hobby, can you still include things like content subscriptions, TV packages, internet etc… as deductions?

    This deduction was repealed/taken away with the new tax code.

  • DFSAccounting

    @mambaland said...

    yes so each year they pay you $50k so it would not be hard to come up with that in losses via old tickets or horse tickets etc…this is assuming they take taxes from the 50k each year before they send it it or if they send it then you pay taxes…not sure how it works

    You would only be able to deduct the losses up to your winnings.

  • DFSAccounting

    @TheDataDetective said...

    Does anyone know if DK Sportsbook and FD Sportsbook generate tax forms on the fly throughout the year (e.g. W-2G’s for bets that exceed the reporting threshold as these bets are settled) or do they instead wait until the end of the tax year and send them all at once?

    Don’t think they generate the actual tax form throughout the year; however, you can contact them for the current tax position (i.e. winnings or losses)

  • Mikekat

    So Fanduel I am 100 percent sure made a mistake on my 1099. They double paid me by mistake back in Feb last year causing a big negative balance on my account (which I paid them back for to get my account to good standing.. they’re mistake but I knew it wasn’t my money to keep). The exact same number is the difference in a new corrected 1099 I just got. I am trying to explain the issue and have not got a resolution now in about 2 days. Any advice to get Fanduel to not report incorrectly to the IRS? I already filed my taxes and even if I didn’t I don’t want to pay taxes on 2750 I did not win.

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    • Last Updated 1 year ago
  • krighton

    Anyone elses DK 1099 seem a bit higher than it should be…..seems like i remember them screwing them up last year and having to send out new ones. Hopefully they didn’t rush it out and make mistakes

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    • Last Updated 1 year ago
  • eaglezzz

    Deadline day for DK.

  • BarkeviousMingo

    If I won $10k on DK and lost $10k on FD, do I still need to file taxes? And if I do, can I deduct my FD losses from my DK winnings and put my income as $0?

  • mambaland

    @BarkeviousMingo said...

    If I won $10k on DK and lost $10k on FD, do I still need to file taxes? And if I do, can I deduct my FD losses from my DK winnings and put my income as $0?

    looks like you will be down about 38 percent on the season

  • jarredsc7

    I skimmed the prior 10 pages. From what I read, it’s seems like not netting losses against wins is the correct, risk-free way to file the taxes.

    Is the netting losses against wins illegal? Or is it debatable? I clearly am not trying to break the law, at all, ever. If it’s the former, so be it. But if it can be justified to some extent, maybe it’s worth finding an accountant who will do the taxes in that manner…

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    • Last Updated 11 months ago
  • SA16

    @krighton said...

    Anyone elses DK 1099 seem a bit higher than it should be…..seems like i remember them screwing them up last year and having to send out new ones. Hopefully they didn’t rush it out and make mistakes

    Yes. Mine is slightly too high.

  • mattnuz07

    Hello, I recently had the good fortune of winning 100k on DK. Very grateful for that but I am an absolute moron when it comes to understanding tax laws. I live in Massachusetts so Uncle Sam’s coming for his cut. Please let me know if any of the below is not accurate and provide some added clarity to the claiming losses against it?

    From my own research – I found out that the winnings combine with my normal income and put me in appropriate tax bracket – from the looks of it means I will owe 32% federal, and in 5.05% State.

    I was told by my tax guy that I could claim losses against it for Federal if I itemized (losing scratch tickets, lottery tickets, losses in Daily), but cannot in Massachusetts unless I prove it is my job which it is not. I am a bit confused by reading the below threads now regarding claiming losses against it.

    Obviously want to abide by the law but handing over $32k to Federal, and $5.1k to State when I know in all likelihood i won’t net out at +100k doesn’t seem right.

    Thanks for your time!

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    • Last Updated 11 months ago
  • krighton

    @SA16 said...

    Yes. Mine is slightly too high.

    i mean they’re supposed to subtract the losses from your total winnings which is the amount they put on the 1099…maybe i made a math error. oh well, cpa has it all now.

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    • Last Updated 11 months ago
  • eperson911

    Argh, mine is slightly too high. Most annoying is that the number I was previously given by support was below $600 and the 1099 is a little above $600. This is very frustrating…

  • mambaland

    @mattnuz07 said...

    I could claim losses against it for Federal if I itemized (losing scratch tickets, lottery tickets, losses in Daily),

    tax guy probably a little confused but am sure you will get the answer your looking for

  • eperson911

    Does DK actually mail the 1099 or is it just provided online?

  • DFSAccounting

    @Mikekat said...

    So Fanduel I am 100 percent sure made a mistake on my 1099. They double paid me by mistake back in Feb last year causing a big negative balance on my account (which I paid them back for to get my account to good standing.. they’re mistake but I knew it wasn’t my money to keep). The exact same number is the difference in a new corrected 1099 I just got. I am trying to explain the issue and have not got a resolution now in about 2 days. Any advice to get Fanduel to not report incorrectly to the IRS? I already filed my taxes and even if I didn’t I don’t want to pay taxes on 2750 I did not win.

    Mikekat, we have the same communication channels with Fanduel. Our only suggestion is to keep inquiry about this issue. It is a big issues because the IRS will receive the corrected 1099 with a higher amount than what you originally reported on your tax return. The IRS will most likely send you a tax notice. Email us directly and we’d be happy to help. This requires more communication.

  • DFSAccounting

    @BarkeviousMingo said...

    If I won $10k on DK and lost $10k on FD, do I still need to file taxes? And if I do, can I deduct my FD losses from my DK winnings and put my income as $0?

    Due to the new tax law, you cannot combine your winnings and losses between operators if you play dfs as a “hobby.” If you qualify as a business, then you can offset your income with losses and expenses. I suggest you report your full winnings on your tax return.

  • DFSAccounting

    @jarredsc7 said...

    I skimmed the prior 10 pages. From what I read, it’s seems like not netting losses against wins is the correct, risk-free way to file the taxes.

    Is the netting losses against wins illegal? Or is it debatable? I clearly am not trying to break the law, at all, ever. If it’s the former, so be it. But if it can be justified to some extent, maybe it’s worth finding an accountant who will do the taxes in that manner…

    if you play dfs as a “hobby” then you can’t net your winnings and losses. You must report the amount you receive on your 1099 on your tax return. But, if you qualify as a business, you can reduce your income by your losses and applicable expenses. We developed a tax determination letter based on the rules and regulations set forth by the IRS. here’s the link. We can prepare your taxes accordingly

    https://dfsaccounting.com/tax-treatment-determination/

    FYI, this is all legal

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    • Last Updated 11 months ago
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