Keep detailed records of your sports betting or any gambling transactions that may be mixed in with 1099-K forms. Although the reporting and issuing requirements have changed for issuers of 1099-K forms, the income reporting requirements for taxpayers have not changed. Don't depend on Pay Pal or any other 1099-K issuer to figure out your taxable or reportable income amounts. As long as you report all of your income (whether or not it is reflected on a tax form) and keep very detailed records (especially with gambling), you will avoid penalties and interest. This article is a good source of reporting and record-keeping information for gambling income and losses. The amounts on 1099-K forms can be taxable, nontaxable, or partially taxable. If taxable, the income could be subject to ordinary tax, capital gains tax, self-employment tax, etc. The IRS gets a copy and knows the amounts, but they don't know if it is taxable or what kind of tax is applied until you provided the necessary details.
Remember - not all income reported on a tax form is taxable and not all taxable income is reported on a tax form. @jamesneedsanswers
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
