Hi all,
I am mentally preparing for the 1099-K I found out I would be receiving for using PayPal as my main way of withdrawing and deposit. Since I like to withdraw and deposit on a daily basis - I will have a good amount of money on my 1099-K. Overall though - my deposits into the Sportsbook is WAY more than my withdrawals. Is there anyway to proactively enter this on my tax returns with evidence so I don't get audited? This is having me really concerned with these changes.
I know the 1099-K is really just a list of incoming transactions (money received) - I assume it's going to trigger something if that number is fairly high. I have also stopped using PayPal and honestly will never use it again. I already closed my Venmo account. I am not trying to avoid paying taxes at all as I've won and paid taxes on gambling in the past but the HEADACHE that is caused by these papers aren't worth the mental health.
Thank you for all your help,
James
