It depends on how you consider your sports betting if you will be able to offset your withdrawals from your deposits. If your sports gambling is considered sports betting, your gambling winnings are considered income. You can only deduct your losses if you itemize on Schedule A, and you can only claim losses up to your winnings. You will need to have documentation to substantiate your losses which can include, receipts, tickets, or canceled checks. You can also keep a detailed log that includes date and type of gambling activity and the amount of your winnings and losses.
Please review the TurboTax article Sports Betting Taxes Guide for more information.
If your sports betting is considered “fantasy sports”, there are two ways that you can report the income. If you consider it a hobby, you will enter it as “other income” on Schedule 1. The organizer should have calculated your net profits by using a formula or by calculating net profit this way: (Withdrawals + Year End Account Balance) - (Deposits – Beginning Year Account Balance) = net profits.
If you consider your fantasy sports betting as a business, you will enter your income and expenses on Schedule C.
Please review the TurboTax article Tax Considerations for Fantasy Sports Fans for more information.
Another resource from TurboTax How to pay taxes on gambling winnings and Losses provides more information.
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