I'm not sure that answer makes sense to me. I have the same situation where I have received both w2g's and a 1099k for the same winnings as wellas deposits I madethrough PayPal. You say to offset the w2g's with a negative number in misc income and claim the 1099k income. Doesn't it make more sense to offset the 1099k amount and claim the w2g income? My thought is that all of the 1099k income would be included in the w2g amount, but all of the w2g income isn't necessarily in the 1099k amount as that would only be money that was cashed out. Gambling winnings are income even if you don't cash it out right? Maybe I'm wrong, but I thought that was the point of the w2g being issued as soon as you win an amount above the threshold.
