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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.

  • DFSAccounting

    @VinnyT87 said...

    If my poker losses exceed my daily fantasy sports winnings, but I am profitable in DFS, can I deduct poker losses up to my DFS winnings? Or do I keep them separate?

    Separate. They are considered different activities by the IRS

  • DFSAccounting

    @leib0039 said...

    Hey guys, I had a solid year on Yahoo fantasy and was expecting a 1099 form like other sites. I was told they don’t do that and its through Paypal and didn’t get much else. So I have been checking paypal under the tax docs and nothing. So does anyone know if they aren’t out yet or do I need to reach out to someone at paypal? Feeling very lost and any help or experience would be great! thanks

    It is our understanding that Yahoo does not report on 1099s. You may receive a 1099 from PayPal. If you don’t the IRS still requires you to report the income.

    Thank you

  • DFSAccounting

    @ctrentjr said...

    I’m new to DFS; do I receive a 1099 only if my net winnings on the site for the year are greater than $600, and is my tax liability only based on the net income from that site?

    You will only receive a 1099 if the net winnings are more than $600. The IRS requires you to report all income (even if less than $600).

  • DFSAccounting

    @Dfrenkel said...

    Hi, I had some beginners luck and won a $9,500 prize. I had a few minor losses after, but withdrew $9,000 from my account. Prior to this, I had submitted my W9. Should I be expecting some documentation in the mail or do I need to self declare this income? I hold a active security clearance and try and keep my taxes above board.

    Thanks

    Was this through DK or FD for DFS? If so, you should receive a 1099 for the net winnings.

  • DFSAccounting

    @Mwward21 said...

    In Yahoo were you do not receive a 1099 do you calculate what to report on your tax return by taking your total winnings subtracted by all your entry fees (including losses)?

    Thanks

    Yes. This is correct.

  • emnj69

    I know the answer but will ask anyways lol
    last year taxes- I had a big net win and got killed on taxes to the tune of 45k
    this past year I lost but since it is my “hobby” I assume there is no way to benefit from my losses correct?

  • TylerHou

    So I had a small win but play a small bankroll. I won $1000 and went to withdraw and noticed I could select to withhold taxes. I was curious as to if I choose to have these taxes withheld, but end up breaking even at the end of the year (so making 0 profit for 2019) will I be receiving a tax return for next year since I already paid down for taxes I thought I was going to have?

  • ThtFilmStudent91

    I received a 1099-MISC from FantasyDraft for $9,295. I got a big win for $10k on there and I guess I put in $705 for the whole year. The thing is I had 7 people involved in this and we split it up. It came to $1428 each. So I sent them 1099-MISC for $1428 each as Box 3 Other Income. Now the thing is, I put the FantasyDraft 1099-MISC in, the question is where do I put the other 6 [7th included me] 1099’s I have for the other people so I don’t get taxed that?

  • Dfrenkel

    It was through Fanduel and I withdrew the money through paypal. Thanks!

  • bpbeland

    • 2015 FanDuel CFB Playboy Mansion Finalist

    I received my 1099 in the mail today and it was a much higher amount than what I calculated when I exported to a CSV. My buddy experienced the same thing. Anybody hear about FanDuel having incorrect amounts on the 1099? I saw a previous post about it but no responses.

  • DFSAccounting

    @emnj69 said...

    I know the answer but will ask anyways lol
    last year taxes- I had a big net win and got killed on taxes to the tune of 45k
    this past year I lost but since it is my “hobby” I assume there is no way to benefit from my losses correct?

    If your DFS activity is treated as a business in 2018, you could take advantage of those losses.

  • DFSAccounting

    @TylerHou said...

    So I had a small win but play a small bankroll. I won $1000 and went to withdraw and noticed I could select to withhold taxes. I was curious as to if I choose to have these taxes withheld, but end up breaking even at the end of the year (so making 0 profit for 2019) will I be receiving a tax return for next year since I already paid down for taxes I thought I was going to have?

    Depending on your overall tax situation, if you have tax withheld and then have a zero profit the tax you had withheld will be refunded.

  • DFSAccounting

    @bpbeland said...

    I received my 1099 in the mail today and it was a much higher amount than what I calculated when I exported to a CSV. My buddy experienced the same thing. Anybody hear about FanDuel having incorrect amounts on the 1099? I saw a previous post about it but no responses.

    Have you contacted their customer service? They have advised us to have you contact them to provide how the amount was calculated.

  • DFSAccounting

    @ThtFilmStudent91 said...

    I received a 1099-MISC from FantasyDraft for $9,295. I got a big win for $10k on there and I guess I put in $705 for the whole year. The thing is I had 7 people involved in this and we split it up. It came to $1428 each. So I sent them 1099-MISC for $1428 each as Box 3 Other Income. Now the thing is, I put the FantasyDraft 1099-MISC in, the question is where do I put the other 6 [7th included me] 1099’s I have for the other people so I don’t get taxed that?

    It sounds like you don’t classify your DFS as a business, correct?

  • ThtFilmStudent91

    @DFSAccounting said...

    It sounds like you don’t classify your DFS as a business, correct?

    Correct. Sounds like it might be easier on doing that way tho?

  • bpbeland

    • 2015 FanDuel CFB Playboy Mansion Finalist

    @DFSAccounting said...

    Have you contacted their customer service? They have advised us to have you contact them to provide how the amount was calculated.

    I reached out to Customer Service. They advised they will take a look at the account and get back to me shortly. I’ll post any updates here. Thanks!

  • bpbeland

    • 2015 FanDuel CFB Playboy Mansion Finalist

    I received a very timely response from Fanduel where they provided a breakdown for me. During my CSV calculations, I never removed my Cancelled contests so they were calculating as part of my entry column but not in my winnings.

  • steelcitydozer

    @DFSAccounting said...

    Depending on your overall tax situation, if you have tax withheld and then have a zero profit the tax you had withheld will be refunded.

    I had taxes withheld on a $4000 win to the tune of $960 on DK .after the year was over I was down $12 for the year. DraftKings isn’t sending a 1099 for me but they already sent my 960 to IRS. How do you recoupe that with no 1099 ,just have emails showing proof

  • DFSAccounting

    @ThtFilmStudent91 said...

    Correct. Sounds like it might be easier on doing that way tho?

    If your DFS activity qualifies as a business, it could be an advantageous tax position to take.

    Our website offers some more guidance on it here https://dfsaccounting.com/tax-treatment-determination/

  • DFSAccounting

    @steelcitydozer said...

    I had taxes withheld on a $4000 win to the tune of $960 on DK .after the year was over I was down $12 for the year. DraftKings isn’t sending a 1099 for me but they already sent my 960 to IRS. How do you recoupe that with no 1099 ,just have emails showing proof

    Have they told you that they are not sending you a 1099? If they withheld tax, they should report that to the IRS and you.

  • steelcitydozer

    @DFSAccounting said...

    Have they told you that they are not sending you a 1099? If they withheld tax, they should report that to the IRS and you.

    They told me I will not be receiving a 1099 because I didn’t profit $600 . They told me to contact a tax professional to get my money back

  • rotokevin

    2014 RG Bowling Co-Champion, CPA & DFS Tax Guru

    • 2014 FanDuel WFBC Finalist

    @steelcitydozer said...

    They told me I will not be receiving a 1099 because I didn’t profit $600 . They told me to contact a tax professional to get my money back

    This is just wrong. If there was tax withheld, they owe you an official form reporting to you and the IRS that withholding was made and remitted to the Treasury on your behalf. Without that, it’s a he said/she said problem. It may not be a 1099-MISC, but they owe you some documentation.

    It’s is a strange situation, though, because it would be a 1099 showing $0 of earnings with $960 of withholding. They are 100% passing the buck here, though. If anyone makes payments to the IRS on behalf of a taxpayer, there must be a paper trail.

  • mambaland

    @rotokevin said...

    This is just wrong. If there was tax withheld, they owe you an official form reporting to you and the IRS that withholding was made and remitted to the Treasury on your behalf. Without that, it’s a he said/she said problem. It may not be a 1099-MISC, but they owe you some documentation.

    Kevin…do you think when DK or FD withold it that it is actually sent to the IRS or kept in escrow of some sort till end of year? seems shady as if they are just drawing interest on everyones tax money till time to return it to you..do they do same on a live final or a 1 million dollar hit>

  • mambaland

    i have a non dfs question if i may ask it…i saw where a lottery scratch off paid 50k a year for 20 years…can you avoid taxes on that by collecting 50k in tickets? i know you can when you win small amounts like say $600 but not sure how you would do it on a 20 year deal as i am sure they take taxes out so you need to find a way to get them back?

  • BerkeleyBoss

    If one profits early in the year, and quite reasonably expects to remain profitable all year, should estimated tax payments be made early in the year? Can I just pay extra when filing my 2018 taxes in order to cover 2019? I want to make sure I don’t run into any late payments or anything of the sort.

    I assume filing as a hobby vs a business makes a difference here? Filing as a business requires quarterly payments?

    Thanks!

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