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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 year ago
  • DFSAccounting

    @milizt said...

    DM sent

    We replied.

  • DFSAccounting

    @mkono said...

    My Buddy won the Yahoo Cup, $50,000. Yahoo didn’t release fund into his paypal Account until today. Would he file the $50,000 on this years return or next year?

    Sounds like Yahoo reported the winnings in 2019 and therefore he would report the winnings on his 2019 income tax return.

  • dhorton8813

    I won 15k on a contest back in may so im just wondering if my 1099 will reflect just the winnings from that one lucky day or will it show my net winnings throughout the year which would be prob around 13k after all the entry fees. Just curious if i will pay taxes on the 15k or will it reflect my total winnings minus the entry fees for the entire year

  • yisman

    where would you write off expenses? Can you do this?

  • DFSAccounting

    @dhorton8813 said...

    I won 15k on a contest back in may so im just wondering if my 1099 will reflect just the winnings from that one lucky day or will it show my net winnings throughout the year which would be prob around 13k after all the entry fees. Just curious if i will pay taxes on the 15k or will it reflect my total winnings minus the entry fees for the entire year

    Your 1099-misc will reflect your net winnings, ie. total winnings minus entry fees plus bonuses . Per your post, $13k would be taxable.

  • DFSAccounting

    @yisman said...

    where would you write off expenses? Can you do this?

    You can, ONLY if you consider DFS a full time activity and qualify to operate as a business. If you play part time or for fun, you can’t write off expenses.

  • dadl

    I went to withdraw on DK today (net earnings are even at best for 2019) and they asked to withhold 14%. When I contacted DK as to why, they said i filled out my W9 form last year. They said that they can delete this W9 and I can fill out a new form for 2019 to avoid taxes being withheld automatically in 2019.

    I am a causal player, who profited around $5k last year. Is this wise for me to do?

  • robbo584

    Hi, I live in the UK and until recently had no issues withdrawing winnings (nothing big, max a few hundred $). today I went to withdraw and was asked to complete a tax form. Does anyone know what this means if you’re based in the UK/overseas? I emailed DK but didn’t provide any clarity, they just referred me to the IRS website and the W8-BEN form….neither of which mean anything to me! Any help appreciated

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    • Last Updated 2 years ago
  • Offthechain76

    @dadl said...

    I went to withdraw on DK today (net earnings are even at best for 2019) and they asked to withhold 14%. When I contacted DK as to why, they said i filled out my W9 form last year. They said that they can delete this W9 and I can fill out a new form for 2019 to avoid taxes being withheld automatically in 2019.

    I am a causal player, who profited around $5k last year. Is this wise for me to do?

    I would like to piggy back off this question. I won around $6k this past weekend on DK. I am a casual player that doesn’t incur a lot of losses due to playing within a bankroll. When I went to withdraw a large portion of the money today DK wanted to automatically take out the federal portion at 24% and mail a check for the remainder. It seems like a couple of years past that they just sent me a 1099 form at the end of the year and I had to claim the winnings on my tax return. Is this something new and if so do I have to let them go ahead and take out the federal taxes now? If I don’t have to, is it better to wait until I do my tax returns next year since I won this money this year and claim the winnings then? I don’t know if it matters or not but I usually end up taking the standard deductions.

  • DFSAccounting

    @dadl said...

    I went to withdraw on DK today (net earnings are even at best for 2019) and they asked to withhold 14%. When I contacted DK as to why, they said i filled out my W9 form last year. They said that they can delete this W9 and I can fill out a new form for 2019 to avoid taxes being withheld automatically in 2019.

    I am a causal player, who profited around $5k last year. Is this wise for me to do?

    You can elect to have taxes withheld when you make withdrawals or you can pay the tax when filing your income tax return. It is pretty much personal preference.

  • DFSAccounting

    @Offthechain76 said...

    I would like to piggy back off this question. I won around $6k this past weekend on DK. I am a casual player that doesn’t incur a lot of losses due to playing within a bankroll. When I went to withdraw a large portion of the money today DK wanted to automatically take out the federal portion at 24% and mail a check for the remainder. It seems like a couple of years past that they just sent me a 1099 form at the end of the year and I had to claim the winnings on my tax return. Is this something new and if so do I have to let them go ahead and take out the federal taxes now? If I don’t have to, is it better to wait until I do my tax returns next year since I won this money this year and claim the winnings then? I don’t know if it matters or not but I usually end up taking the standard deductions.

    Kind of the same response to the other question. Whether the tax is withheld now or paid when the tax return is filed is personal preference. If too much is withheld throughout the year, you would most likely receive a refund when you file your income taxes.

  • DFSAccounting

    @DFSAccounting said...

    Kind of the same response to the other question. Whether the tax is withheld now or paid when the tax return is filed is personal preference. If too much is withheld throughout the year, you would most likely receive a refund when you file your income taxes.

    It should be noted that if large amounts are won/earned in earlier parts of the year, quarterly estimated payments maybe required. It depends on the individuals tax situation.

  • eperson911

    This is my first year winning enough to get a W-9. When are the forms typically sent from DraftKings?

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    • Last Updated 2 years ago
  • Stewburtx8

    • 2012 FanDuel WFBC Finalist

    @eperson911 said...

    This is my first year winning enough to get a W-9. When are the forms typically sent from DraftKings?

    They must be mailed by January 31st (they also will make it available on your DK account). BUT, from past experience, DraftKings tends to get extensions and it could be late February or even March until you actually receive it. But who knows, maybe they will get things together this year. Doubtful though.

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    • Last Updated 2 years ago
  • nickrock23

    All u need is the net amount and their TIN #.
    They already provided me with winnings, entry fees and bonuses.
    The chat rep I spoke to said they couldn’t provide me with a TIN.
    If the forks aren’t online by Feb 1 I will press them some more.
    IRS owes me alot and this DK winnings is crumbs really so it’s enough to keep me away next CFB season. Every year they file for extensions.

  • DFSAccounting

    @Stewburtx8 said...

    They must be mailed by January 31st (they also will make it available on your DK account). BUT, from past experience, DraftKings tends to get extensions and it could be late February or even March until you actually receive it. But who knows, maybe they will get things together this year. Doubtful though.

    We second this.

  • DFSAccounting

    @nickrock23 said...

    All u need is the net amount and their TIN #.
    They already provided me with winnings, entry fees and bonuses.
    The chat rep I spoke to said they couldn’t provide me with a TIN.
    If the forks aren’t online by Feb 1 I will press them some more.
    IRS owes me alot and this DK winnings is crumbs really so it’s enough to keep me away next CFB season. Every year they file for extensions.

    You can get the TIN off of a previous 1099 DK has sent you.

  • Coheedrodeo

    what it the entry fees are a little bit higher than the winnings and you played everyday?

  • nickrock23

    @DFSAccounting said...

    You can get the TIN off of a previous 1099 DK has sent you.

    Was thinking that, but is there a chance that the TIN has changed or they set it up from a different company year to year? (does it matter they have offshore companies?/could those have different TINs?)
    To me that is risky, even if you were sure of the ID, even the amount could be off cause they have messed up in the past. I think it’s all taking a chance. Would rather have the hard copy or the info straight from them and be confident about it if I am filing that without seeing the form online or physically.

  • DFSAccounting

    @nickrock23 said...

    Was thinking that, but is there a chance that the TIN has changed or they set it up from a different company year to year? (does it matter they have offshore companies?/could those have different TINs?)
    To me that is risky, even if you were sure of the ID, even the amount could be off cause they have messed up in the past. I think it’s all taking a chance. Would rather have the hard copy or the info straight from them and be confident about it if I am filing that without seeing the form online or physically.

    True. Forms are not final yet so e-file is not open. We’d recommend waiting until you have the form in hand.

  • montestocks

    quick question.. can you offset net winnings from one site, with entry fee’s from another site where you will not receive a 1099 misc? I E a site you did not win money (net) on. Just curious

  • DFSAccounting

    @montestocks said...

    quick question.. can you offset net winnings from one site, with entry fee’s from another site where you will not receive a 1099 misc? I E a site you did not win money (net) on. Just curious

    If your DFS activity qualifies as a business, yes.

  • TheWings977

    Quick question:

    If I have won $750 on Draftkings, but lost $900, will I still receive a 1099? No withdrawals were made, strictly deposits. Based off what I read so far it looks like I am but i’d rather get reassurance.

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    • Last Updated 2 years ago
  • DFSAccounting

    @TheWings977 said...

    Quick question:

    If I have won $750 on Draftkings, but lost $900, will I still receive a 1099? No withdrawals were made, strictly deposits. Based off what I read so far it looks like I am but i’d rather get reassurance.

    Typically, if you export the CSV file and the entry fees/losses exceed the winnings, then no 1099 will be received.

  • jbfones

    @TheWings977

    You will not receive a 1099. You have to profit $600+ in the year to receive a 1099.

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    • Last Updated 2 years ago
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