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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.

    • Link
    • Last Updated 4 years ago
  • Votts

    No. If you are negative from 2015 only, then no you don’t pay taxes. And you can only write off as much as you won, you can’t claim more losses than winnings.

  • osuryanf

    Anyone else received their Draftkings 1099 yet? I have not.

  • PJGuin23

    DFS Tax Guru

    @geardaddy said...

    Do you still pay taxes if you are in the negative?

    For one site, no. If you have winnings on another we need to talk.

  • Votts

    @osuryanf said...

    Anyone else received their Draftkings 1099 yet? I have not.

    No, I haven’t received mine yet either.. couple people said they received theirs in the past couple days so hopefully soon! The wife is killing me for it! Noone else wants theirs more than me believe me lol

  • scsa1998

    So I recieved my 1099 from DK today(didn’t think i was getting one) It was for a smallish profit over the 1099 limit. Problem is I already did my taxes since again did not think I was getting a 1099. what should i do

  • myb821

    @scsa1998 said...

    So I recieved my 1099 from DK today(didn’t think i was getting one) It was for a smallish profit over the 1099 limit. Problem is I already did my taxes since again did not think I was getting a 1099. what should i do

    file an amended return……

  • PJGuin23

    DFS Tax Guru

    @myb821 said...

    file an amended return……

    I concur.

  • SundayFunday

    • x2

      2016 FanDuel NBA Playboy Mansion Finalist

    • 2016 FanDuel MLB Playboy Mansion Finalist

    Has anyone received a 1099 from Yahoo! or DraftDay? I thought I read somewhere Yahoo wasn’t issuing 1099’s? Can they really just choose not to issue 1099’s?

  • PJGuin23

    DFS Tax Guru

    @SundayFunday said...

    Has anyone received a 1099 from Yahoo! or DraftDay? I thought I read somewhere Yahoo wasn’t issuing 1099’s? Can they really just choose not to issue 1099’s?

    They are only issuing 1099-Ks from what I can tell. That said, income is reportable regardless. Even if no 1099 MISC per se, the IRS can find the extra income if they look hard enough especially if it’s over 600 but under 20000.

  • SundayFunday

    • x2

      2016 FanDuel NBA Playboy Mansion Finalist

    • 2016 FanDuel MLB Playboy Mansion Finalist

    1099-K is the form PayPal would issue, correct? It’s my understanding they only issue a 1099-K if you have over $20K in transfers and exceed a certain number of transactions, is that correct? I plan to report all income, would just prefer to wait until I receive all forms from the companies. I’m trying to determine if I should continue to wait or just file based on my records for sites like Yahoo!.

    Thank You

  • PJGuin23

    DFS Tax Guru

    @SundayFunday said...

    1099-K is the form PayPal would issue, correct? It’s my understanding they only issue a 1099-K if you have over $20K in transfers and exceed a certain number of transactions, is that correct? I plan to report all income, would just prefer to wait until I receive all forms from the companies. I’m trying to determine if I should continue to wait or just file based on my records for sites like Yahoo!.

    Thank You

    That is correct. It would have to exceed both thresholds. Looks like Yahoo you’re on your own.

  • cheatc0des

    • $1M Prize Winner

    • 2015 FanDuel WFFC Finalist

    I don’t want to pay taxes this year…looked at my 1099-MISC and it’s $1,050,704. Can’t complain about the winnings but the taxes are going to be monstrous!

  • PJGuin23

    DFS Tax Guru

    @cheatc0des said...

    I don’t want to pay taxes this year…looked at my 1099-MISC and it’s $1,050,704. Can’t complain about the winnings but the taxes are going to be monstrous!

    Congrats! You have options to REDUCE what’s owed BUT taxes are owed on that. PM me for specifics.

  • markaw4

    Here is my full situation. I was profitable on Fanduel in 2015 enough to get a form but I do have losses on Draftkings and other sites. I have a full time job and just want to file this as hobby income. I do itemized since I pay a mortgage interest and other things.

    I use Turbotax to file and I was pretty much done with my taxes with the exception of waiting for this form from Fanduel. So once I got it I added it to my return and then it automatically prompted me for “gambling losses”. Based on what I read, the losses I have from DraftKings and other sites should not go here since it’s not technically a “gambling loss”, right? If not where do they go? Thanks!

  • MikeMineo

    I should choose just one site and play there from now on lol.

    I won on one site and lost on another, but it seems so convoluted to combine them, so looks like I’ll just be adding the winnings from the one site to my tax return while ignoring the losses from the other site :/ doesn’t seem worth filing as a hobby or whatever to credit the $800 or so in losses from one site.

  • AtGame7

    @cheatc0des said...

    I don’t want to pay taxes this year…looked at my 1099-MISC and it’s $1,050,704. Can’t complain about the winnings but the taxes are going to be monstrous!

    You know, there’s always the joke about the guy who is so miserable that he would win the lottery and bitch about paying the taxes.

    We found THAT guy!

    Congrats on oweing more in taxes than I profited last year.

  • LegiaWwa

    @cheatc0des said...

    I don’t want to pay taxes this year…looked at my 1099-MISC and it’s $1,050,704. Can’t complain about the winnings but the taxes are going to be monstrous!

    Epic #humblebrag right there

  • PJGuin23

    DFS Tax Guru

    @markaw4 said...

    Here is my full situation. I was profitable on Fanduel in 2015 enough to get a form but I do have losses on Draftkings and other sites. I have a full time job and just want to file this as hobby income. I do itemized since I pay a mortgage interest and other things.

    I use Turbotax to file and I was pretty much done with my taxes with the exception of waiting for this form from Fanduel. So once I got it I added it to my return and then it automatically prompted me for “gambling losses”. Based on what I read, the losses I have from DraftKings and other sites should not go here since it’s not technically a “gambling loss”, right? If not where do they go? Thanks!

    It’s not “gambling”. As a hobby, losses go on other miscellaneous subject to 2% floor. As a business, you may want to PM me.

  • inwhiterooms

    What’s the proper way to report Yahoo winnings since they don’t send out 1099s?

  • PJGuin23

    DFS Tax Guru

    @inwhiterooms said...

    What’s the proper way to report Yahoo winnings since they don’t send out 1099s?

    Depends on how much you win. For Gross amount, I would go with the industry standard Gross less Entry fees plus Bonuses

  • inwhiterooms

    @PJGuin23 said...

    Depends on how much you win. For Gross amount, I would go with the industry standard Gross less Entry fees plus Bonuses

    So it would be entered the same way as a regular 1099? I guess I’m confused as to how to report it since I don’t have any documentation or their federal ID number.

  • PJGuin23

    DFS Tax Guru

    @inwhiterooms said...

    So it would be entered the same way as a regular 1099? I guess I’m confused as to how to report it since I don’t have any documentation or their federal ID number.

    Don’t need an EIN. So long as you report it. You can force it on Line 21 as a hobby if needed. I have to admit it has been forever since I last used TurboTax.

  • inwhiterooms

    @PJGuin23 said...

    Don’t need an EIN. So long as you report it. You can force it on Line 21 as a hobby if needed. I have to admit it has been forever since I last used TurboTax.

    Ok cool, thanks for the help.

  • DiamondD2345

    Couple questions (1) If anyone else has done their taxes on TurboTax, after entering the 1099 it asks if “any of these uncommon situations apply”. One of these is “This was prize winnings”. Should I check that box? Does that not lead to it be classified as gambling winnings?
    (2) What is the general criteria for the hobby/business classification? I consider it to be a hobby, and I didn’t make that large a sum of money last year, but I don’t earn much from my job either, so it ends up being more than 10%.
    Appreciate the help.

  • TooMuchMonta

    I won a significant amount in a GPP in 2016. CPA is raising possibility that this might be considered “Passive Income” (and subject to additional Obamacare tax). I’ve read statutes and just don’t see it. Any CPA here able to weigh in? I don’t see how DFS could be deemed to be a “passive activity”.

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