I received a 1099k from PayPal for my withdrawals from online sports betting (over 20k). My deposits through PayPal for sports betting is greater than my withdrawals received. I will not be receiving a W-2 G because I did not reach the $600 threshold (negative net on the year). How should I handle this? Is there a way to use my deposits to offset the withdrawal received? Do I need to enter the amount shown on the 1099k as 1099k other income or should I enter the amount as gambling winnings and then itemize my loses (loses greater than standard deduction)?
