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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    • Last Updated 1 day ago
  • GoldenWolf87

    I had previously won on DK last year mostly 15,000$ as a Canadian. What is this US Source Income Subject to Withholding?

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    • Last Updated 9 months ago
  • Felixxberg

    • 759

      RG Overall Ranking

    DK will ask you to fill in a form (which is now very easy to fill on the website itself). You have to write “Canada” in the spot where they ask if your country is subject to a treaty. If you have any problem(s), you should contact DK support. They have a live chat option on the desktop site.

  • GoldenWolf87

    @Felixxberg said...

    DK will ask you to fill in a form (which is now very easy to fill on the website itself). You have to write “Canada” in the spot where they ask if your country is subject to a treaty. If you have any problem(s), you should contact DK support. They have a live chat option on the desktop site.

    Strange i thought i did this last year haha.

  • ovonel

    Would appreciate some help here. I lost 4k at the beginning of 2019, then won 23k in April. I withdrew the 23k and checked the box where it said 24% mandatory taxes withheld, which came out to over 5k they withheld. At the end of the year will the net profit be calculated to account for the 4k I lost at the beginng of the year? And if so will i get some partial refund for the 5k they withheld? Or are losses and winnings considered separate?

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    • Last Updated 8 months ago
  • Stewburtx8

    • 2012 FanDuel WFBC Finalist

    @ovonel said...

    Would appreciate some help here. I lost 4k at the beginning of 2019, then won 23k in April. I withdrew the 23k and checked the box where it said 24% mandatory taxes withheld, which came out to over 5k they withheld. At the end of the year will the net profit be calculated to account for the 4k I lost at the beginng of the year? And if so will i get some partial refund for the 5k they withheld? Or are losses and winnings considered separate?

    You will get a 1099 for total net profit for the year over $600.

    The 1099 will show that you paid $5k in taxes.

    Both the total profit and taxes already paid will be included on your tax return and added to all other income and taxes paid to determine any refund or tax owed.

  • Goesch89

    Question, I have my DK account set up to send 25% of each account withdrawal I make in to the government for taxes. I deposit, and make withdrawals on a frequent basis, so I have sent in a decent amount of money for taxes already this year. What happens to all of that tax money I’ve been sending in, if at the end of the year, I wind up below the $600 in net winnings threshold, or perhaps even at a loss for the year? The 25% I’m sending in is anticipating I come in above $600 in net winnings, and have to pay taxes on the total, but if my total year ends up as a net loss, I obviously wouldn’t have a winnings sum to be paying taxes on, so does the 25% I’ve been paying on each withdrawal all year just get applied to my overall tax bill?

  • wlves

    So, I won about $20,000 this year(all in 2019) on draftkings. I can’t seem to find much information about the tax brackets for winnings.

    I am wondering if it would do me any good to withdraw like half of the winnings this year and then half in 2020. Would that allow me to pay a smaller percentage of taxes on my winnings or what is the lowest tax bracket for percentage taxed on winnings? Thanks for any help.

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    • Last Updated 5 months ago
  • DFSAccounting

    @Goesch89 said...

    Question, I have my DK account set up to send 25% of each account withdrawal I make in to the government for taxes. I deposit, and make withdrawals on a frequent basis, so I have sent in a decent amount of money for taxes already this year. What happens to all of that tax money I’ve been sending in, if at the end of the year, I wind up below the $600 in net winnings threshold, or perhaps even at a loss for the year? The 25% I’m sending in is anticipating I come in above $600 in net winnings, and have to pay taxes on the total, but if my total year ends up as a net loss, I obviously wouldn’t have a winnings sum to be paying taxes on, so does the 25% I’ve been paying on each withdrawal all year just get applied to my overall tax bill?

    Great question. Yes, the 25% you have been paying will get applied to your overall tax bill. These payments are called federal withholding. DK will send you a 1099-misc and will detail your net winnings (if applicable) and total amount you paid in federal withholding. You will then report this on your tax return and it will be applied to your tax liability. Hopefully, you paid in more than what you are taxed and you get a refund.

  • DFSAccounting

    @wlves said...

    So, I won about $20,000 this year(all in 2019) on draftkings. I can’t seem to find much information about the tax brackets for winnings.

    I am wondering if it would do me any good to withdraw like half of the winnings this year and then half in 2020. Would that allow me to pay a smaller percentage of taxes on my winnings or what is the lowest tax bracket for percentage taxed on winnings? Thanks for any help.

    The tax brackets look at your taxable income as a whole. There is no specific tax brackets for dfs winnings.

    DK and FD calculate your 1099-misc (the tax document you will receive in January) based on net winnings( winnings – entry fees + bonuses). If your net winnings for 2019 is $20,000, then your 2019 1099-misc will show $20,000 and is completely taxable in 2019. It doesn’t matter when you withdraw your winnings.

  • blue

    If you win at DK or FD, do they send you a 1099? Is it via email or regular mail to you house? Thanks in advance

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    • Last Updated 5 months ago
  • tmarohl

    Fan Duel sends you one to your registered address. DK posts them to your account, under account information, document center.

  • blue

    Thanks

  • SkateFiend

    I found out recently that bonuses (like DK’s crowns) are counted as your prize winnings for tax purposes. But if I use them to play contests, will that be considered as using entry fees to enter contests? In other words, if I use 500 crowns to enter contests but fail to cash in all of them, that would be taken out of my net profit? As I understand it net profit = your total wins + bonuses – entry fees.

    Thanks

  • Wrx_guy

    Recently won 28k on FanDuel and withdrew it. I’m setting aside 8k for taxes. Am I doing it right? I’m really not sure what to expect when taxes come next year.

  • arachnid

    hello, straightforward question here, or so i believe: on DK Sportsbook, assuming the year ended today (12.06.19), if I ‘won’ $5K during the year, but ‘lost’ $10K for a net yearly loss of $5K, what are my reporting obligations? will DK furnish tax forms?

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    • Last Updated 1 month ago
  • bigez952

    @arachnid said...

    hello, straightforward question here, or so i believe: on DK Sportsbook, assuming the year ended today (12.06.19), if I ‘won’ $5K during the year, but ‘lost’ $10K for a net yearly loss of $5K, what are my reporting obligations? will DK furnish tax forms?

    If you lost money gambling there is no need to report anything and you won’t be getting tax forms from DK. They only send them out to users to have net profits over $600 and if your down $5000 you have no tax obligations.

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    • Last Updated 1 month ago
  • bgilges

    I co-managed a team in the FFPC and we won $1500. FFPC won’t split prizes unless it over $2000. So I will get a 1099, should I take out taxes before I pay my buddy, if so approximately what would that amount be? I don’t want to be on the hook for the whole income.

  • Kjb122886

    Say I won 8 k with some being more than $600 but I lost 10.5 k. Will I still receive a 1099?

  • DFSAccounting

    @bgilges said...

    I co-managed a team in the FFPC and we won $1500. FFPC won’t split prizes unless it over $2000. So I will get a 1099, should I take out taxes before I pay my buddy, if so approximately what would that amount be? I don’t want to be on the hook for the whole income.

    Yes, correct. i would take out the taxes before you pay your buddy. I would suggest preparing your tax return immediately. Enter in all your personal tax information and calculate the tax based on your tax docs. Then add the $1,500. That change in tax is what you and your buddy should split.

  • DFSAccounting

    you will not receive a 1099. This is because the net result is a loss of $2.5k.

  • DFSAccounting

    Yes, you are doing the right thing by setting aside $8k. I suggest reaching out to FD and requesting a profit and loss of your 2019 activity. This will tell you how much you earned and will have to report on your tax return.

  • DFSAccounting

    correct. you are in a loss position for the year and will not have to report any income. Should you have won more than $600, you would have received a form W-G2.

  • Pats7914

    • 74

      RG Overall Ranking

    • Ranked #98

      RG Tiered Ranking

    Gambling winnings reported as income, losses deducted if you itemize re: gambling question above

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    • Last Updated 2 weeks ago
  • bcallahan34

    @arachnid said...

    hello, straightforward question here, or so i believe: on DK Sportsbook, assuming the year ended today (12.06.19), if I ‘won’ $5K during the year, but ‘lost’ $10K for a net yearly loss of $5K, what are my reporting obligations? will DK furnish tax forms?

    My understanding is that DK Sportsbook doesn’t even look at net gain/loss when determining whether to report taxes. It instead looks at individual bets and issues a W-2G for each bet that crosses the reporting threshold. This is different from how DFS sites report.

    Could someone from DFSAccounting please confirm?

  • SkateFiend

    Are bonuses (like DK’s crowns) counted as winnings for tax purposes?

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