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  • roosevelt

    So today is the 1st day in 2016. 2015 was my 2nd year playing, my first full year playing and my first profitable year playing fantasy sports.

    While profit is wonderful, with profit comes the responsibility of taxes.

    If you work a job and you are good at fantasy sports, one thing I recommend is changing your W4 withholdings and reducing them. I don’t have a lot of deductions so I reduced my withholdings to 0.

    You will get less money in your paycheck. However, you also will pay less or get a bigger refund come April 15th. And although the IRS will allow you to do a payment plan if necessary, they charge you interest and fees DAILY for this privilege, so it’s something you definitely want to avoid if possible.

    Also don’t forget if you end up owing more than $1000 in taxes you are responsible for making quarterly tax payments of your fantasy sports winnings. Waiting until the end of the year to pay will result in an additional penalty.

    Hope that helps and heres to a prosperous new year!

  • lk2000

    “Don’t forget if you end up owing more than $1000 in taxes you are responsible for making quarterly tax payments of your fantasy sports winnings. Waiting until the end of the year to pay will result in an additional penalty.”

    Do you have a link to the section of the code that spells this out? My understanding was players were only obligated to report winnings at year end when filing the rest of their taxes.

  • roosevelt

    Estimated tax is the method used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards (MY NOTEPRIZES AND AWARDS IS FANTASY SPORTS). You also may have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.

    Who Must Pay Estimated Tax
    If you are filing as a sole proprietor, partner, S corporation shareholder, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.

    https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes

  • lk2000

    Thanks, that’s good info to know. Makes sense that those self-employed and playing DFS full time report quarterly but would not have thought about it otherwise. My lucky tourney bink was in Q4 so it looks like I’m in the clear until Feb 1.

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