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  • PJGuin23

    DFS Tax Guru

    As many or some of you may know, I have a tax practice specializing in Daily Fantasy Sports participants. My site is Daily Fantasy Taxes, and I can make your DFS filing simple & easy if you are looking for help. I have a partnership with RotoGrinders to offer DFS Tax Services to the RG Community. I am a CPA and have DFS clients along with other industries such as Horse Racing (DFS similarities on Hobby-Business), Construction and Services. I met some of you in New York last November and had a blast! I was told all tax related posts would be kept to this thread. Alternatively you can read my Tax article here My rates are reasonable and I have e-filing. We can work over the phone or by e-mail, whichever you prefer.

    Note: I have a fax and a Secure Web Portal to exchange files if needed.

    Last piece of advice, wait to file your return if you have FanDuel or DraftKings income.

    So without further adieu, let’s get the DFS Tax General Q&A going……..ask away!

    PJGuin23’s Disclaimer: I am a Certified Public Accountant licensed by the Commonwealth of Pennsylvania. Any information provided is for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional accountant, CPA, lawyer or other competent financial professional. Presentation of information I provide on RotoGrinders does not constitute an accountant-client relationship. Such relationship can be established by engaging in professional services privately with PJGuin23. RotoGrinders readers are advised not to act upon information I provide without seeking the service of a professional accountant well versed in your particular situation.

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  • irepDCsports

    10:39p EST got an email to retrieve my 1099 from FD. Was successfully able to retrieve it.

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    • Last Updated 4 years ago
  • baylormatt

    I received my 1099 from FD. I dont believe it is correct…. Shouldnt it be the profit only; my deposits subtracted from my withdrawals???

  • mjtaxpro

    @baylormatt said...

    I received my 1099 from FD. I dont believe it is correct…. Shouldnt it be the profit only; my deposits subtracted from my withdrawals???

    Yes…Plus your 12/31/16 ending account balance, minus your 1/1/16 beginning account balance.

  • btwice80

    @baylormatt said...

    I received my 1099 from FD. I dont believe it is correct…. Shouldnt it be the profit only; my deposits subtracted from my withdrawals???

    Deposits and withdrawals have nothing to do with it. Your net profit is your gross winnings minus all entry fees (and any Fanduel points used to enter contests don’t count as entry fees). Doesn’t matter what you withdrew.

  • tmarohl

    Got my 1099. Seems to be about right. Shows I made $4.924 in profit.

  • Ds9596

    I’ve never done taxes before in my life so need some help…I got my 1099 and I’ve made about $1300 from one site so what do I do next? I’m confused on which to choose between Schedule C or Schedule SE? Since were dfs players, doesn’t that mean we are self employed? I just do this as a hobby, I’m 21 and live in California. Can I do this on TurboTax, is it easy to do it there, and would it be free or how much does it cost?

    Need help please, thanks!

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  • deactivated51600

    @Ds9596 said...

    I’ve never done taxes before in my life so need some help…I got my 1099 and I’ve made about $1300 so what do I do next? I’m confused on which to choose between Schedule C or Schedule SE? Since were dfs players, doesn’t that mean we are self employed? I just do this as a hobby, I’m 21 and live in California. Can I do this on TurboTax, is it easy to do it there, and would it be free or how much does it cost?

    this should help you:

    https://rotogrinders.com/articles/daily-fantasy-sports-tax-reporting-1164370

  • Ds9596

    Ya, I’ve read that. Since it’s a hobby for me, I do Schedule C right? Is a $150 subscription an itemized deduction?

  • deactivated51600

    You will want to keep it simple and just go 1040 and take standard deduction rather than itemize if the $150 for the subscription is all you would deduct.

  • kcroyalty29

    When will DK submit? Were they on time last year?

  • Ds9596

    @whoisjohngalt said...

    You will want to keep it simple and just go 1040 and take standard deduction rather than itemize if the $150 for the subscription is all you would deduct.

    Ya, that’s all I have as an expense. So does that mean I just take the 1040 schedule C?

  • btwice80

    @Ds9596 said...

    So does that mean I just take the 1040 schedule C?

    You don’t need Schedule C. On line 21 (Other income) on the 1040, just write Fantasy Sports Winnings and list the amount.

  • Stewburtx8

    • 2012 FanDuel WFBC Finalist

    @btwice80 said...

    You don’t need Schedule C. On line 21 (Other income) on the 1040, just write Fantasy Sports Winnings and list the amount.

    THIS. Do not pay Self-Employment tax. Contact PJGuin23 if you need assistance.

  • PJGuin23

    DFS Tax Guru

    @Stewburtx8 said...

    THIS. Do not pay Self-Employment tax. Contact PJGuin23 if you need assistance.

    Not if it’s a small amount especially.

  • Fa7es

    I’ve withdrawn 7k with around 1k or so in entries. I consider this a hobby as $4k was from placing top 10 in the FD Thanksgiving contest. What should I do for tax purposes?

  • Stewburtx8

    • 2012 FanDuel WFBC Finalist

    @kcroyalty29 said...

    When will DK submit? Were they on time last year?

    Both sites filed for an extension last year and I do not believe I got my 1099 from either site until March. That being said, I think the fact that FanDuel already sent theirs out is a good sign so no reason to believe DraftKings will not mail them out by the January 31st deadline.

  • Jup13

    So I screwed myself apparently by paying self employment tax last year. I know absolutely nothing about taxes and never felt like paying someone for advice when I probably won’t understand it anyway.

    2016 was my first year where I lost money since I started in 2014, and Im curious how to go about accounting for said losses on this years taxes, or if I even should.

    I read your website, and apparently that all depends on the amounts, so I mean, I guess I don’t really know how to know for sure, but the amount I lost in 2016 was about 15-20% of the amount that I made in 2015.

    Just curious if it’s worth it to take losses this year, and also wondering if me paying self-employment tax would make it more worth it to do so. Thanks for the time. Im basically just throwing darts here. I’ve always been at the mercy of H&R Block, and last year they insisted I pay the self-employment tax, which is kind of making me sick to my stomach now that I realize I probably just handed away a couple thousand I didn’t have to.

  • Stewburtx8

    • 2012 FanDuel WFBC Finalist

    @Jup13 said...

    So I screwed myself apparently by paying self employment tax last year. I know absolutely nothing about taxes and never felt like paying someone for advice when I probably won’t understand it anyway.

    2016 was my first year where I lost money since I started in 2014, and Im curious how to go about accounting for said losses on this years taxes, or if I even should.

    I read your website, and apparently that all depends on the amounts, so I mean, I guess I don’t really know how to know for sure, but the amount I lost in 2016 was about 15-20% of the amount that I made in 2015.

    Just curious if it’s worth it to take losses this year, and also wondering if me paying self-employment tax would make it more worth it to do so. Thanks for the time. Im basically just throwing darts here. I’ve always been at the mercy of H&R Block, and last year they insisted I pay the self-employment tax, which is kind of making me sick to my stomach now that I realize I probably just handed away a couple thousand I didn’t have to.

    This post is a good reason for folks to reach out to someone like PJGuin23, who has a lot of experience filing DFS tax returns. I can almost guarantee you someone at H&R Block may have no idea what DFS is. They just see a 1099-MISC with a total in box 7 for “non-employee compensation” and they have been trained that it goes on Schedule C.

    I am not going to say they were wrong, as it is certainly OK to file this way. It’s just everyone’s situation is different and I would almost always lean towards putting it on line 21 of the 1040 if possible. I would probably touch base with PJGuin23 this year but consistency is important, so since you showed a profit in previous years on Schedule C, showing a loss this year on Schedule C may be advisable/OK. But it has been said above, everyone’s situation is different (other income sources, deductions, etc.), so sometimes it is worth it to pay a few bucks to contact a professional with experience filing DFS returns (they may save you A LOT more than the cost you pay them).

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  • KindGuy

    I’m 19 with no bank account, no knowledge of taxes, and I’ve never been a profitable player but reading this thread has been so helpful and I’ve learned a lot. Thanks to PJGuin23, Stewburtx8 and others for taking the time to help a clueless fellow grinder out!

  • PJGuin23

    DFS Tax Guru

    @Stewburtx8 said...

    This post is a good reason for folks to reach out to someone like PJGuin23, who has a lot of experience filing DFS tax returns. I can almost guarantee you someone at H&R Block may have no idea what DFS is. They just see a 1099-MISC with a total in box 7 for “non-employee compensation” and they have been trained that it goes on Schedule C.

    I am not going to say they were wrong, as it is certainly OK to file this way. It’s just everyone’s situation is different and I would almost always lean towards putting it on line 21 of the 1040 if possible. I would probably touch base with PJGuin23 this year but consistency is important, so since you showed a profit in previous years on Schedule C, showing a loss this year on Schedule C may be advisable/OK. But it has been said above, everyone’s situation is different (other income sources, deductions, etc.), so sometimes it is worth it to pay a few bucks to contact a professional with experience filing DFS returns (they may save you A LOT more than the cost you pay them).

    Some tax softwares automatically put that on Line 21, Subject to SE with no deductions. They are clueless as to Hobby vs Business. I’ve looked at case law in similar areas back and front regarding DFS.

    I’ve been at CPE classes (I’m 36 and the youngest attendee, median age 60) mentioning what I do with DFS and I get 1000 different looks from other CPAs. Some think it’s “Gambling” and should go on a W-2G. Once I explained UIGEA, a few were like … oh… that makes sense.

  • hendog

    • 817

      RG Overall Ranking

    • Ranked #88

      RG Tiered Ranking

    • 2017 DraftKings FFWC Finalist

    My DraftKings 1099 is now available under my account > Document Center. Didn’t get an email about it. It says date available: January 21, 2017 which is clearly wrong as I’ve been checking repeatedly. But thought I’d let you all know.

  • yanksfan1

    What’s happening with Aces and 1099s?

  • jokah03

    To preface, I’m a total tax newbie and have never had to pay taxes from any dfs site. This year, I hit a small tourney back in May for 500 and had a small profit playing every week for football.

    I received a 1099-MISC from fanduel for a pretty small amount under $800. Do I just put the amount from the document on my tax return and that’s it? Or am I supposed to itemize or whatever with my losses as well? I’m sure I made a profit, I’m not sure if the profit was 800~ dollars or not.

  • qatman

    @hendog said...

    My DraftKings 1099 is now available under my account > Document Center. Didn’t get an email about it. It says date available: January 21, 2017 which is clearly wrong as I’ve been checking repeatedly. But thought I’d let you all know.

    Were you able to download it? I keep getting the message “The document you requested was unable to be retrieved.” I assume they’ll send out paper copies also – maybe they just haven’t finalized everything yet (hence the lack of email).

  • PJGuin23

    DFS Tax Guru

    @yanksfan1 said...

    What’s happening with Aces and 1099s?

    I just became aware of the bankruptcy. Not sure of any 1099 filing but a reminder income is income.

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