Hi all, I have a big issues and can’t find a straight answer anywhere.
This year, I played online rummy games, where I put money in, play, and either win or lose. I got quite a surprise when I was taxed on total winnings and not just what I withdrawaled. I kept a lot of money in the game just to play, and didn’t realize all of this would be taxed!
I got a 1099-Misc form with the amount won on box 3.
How do I classify this on my tax return?? It’s prizes, but if I put a wager on it, am I allowed to show this as gambling winnings and deduct my expenses (ie the games I lost)? Bc if not, sounds like I can’t deduct anything I put in.
any help would be very appreciated!
