@lanerocco wrote:
My 1099K is correct because it’s all the “income” or money I withdrew from PrizePicks. But it doesn’t cancel any of the negatives so I’m basically using money that was already taxed to gamble with. Lost more than I won. Withdrew money that I did win at times and now that’s being taxed on PayPal but if I just sent my money straight to my bank account none of this would be happening because I wouldn’t have received anything from PrizePicks because I LOST more then I WON.
Welcome to the world of gambling and taxes. All your winnings are gross taxable income. Your losses are an itemized deduction on schedule A (up to, but not more than, the amount of your winnings). That means that, depending on your other itemized deductions and other tax situations, you might be able to fully deduct the losses, or not deduct the losses at all (meaning the winnings are fully taxable) or something in between.
That's the law, it's been the law for at least 50 years, and the law on taxation of gambling winnings hasn't changed just because new methods of gambling have been invented.
