Get your taxes done using TurboTax

Yes.  If I understand your question you have income from betting through Hard Rock Bet online casino.  Any gambling winnings are taxable and any gambling expenses are only deductible if you can itemize your deductions, limited to the amount of winnings.

On the other hand, you are not required to pay tax on your own money, if you also did take money out of PayPal that was your own funds. The key is you must have the details because you are responsible to know the difference in funds in your PayPal account.

Enter your 1099-K and you are allowed to reduce it for any amount that was money you already earned from another source and placed into your account, then withdrew the same funds.

• If you use the 1099-K entry you will not be asked to select 'gambling winnings' so you will select 'Other'. For this reason the question about losses will not be asked but the income will be reported.

The other option for reporting gambling winnings is to use the steps below. You must track the winnings and the expenses of the gambling.

Gambling Winnings

A payer is required to issue you a Form W-2G if you receive certain gambling winnings or have any gambling winnings subject to federal income tax withholding. You must report all gambling winnings as 'Other Income' on your tax return including winnings that aren't reported on a form. 

Gambling Losses

You may deduct gambling losses only if you itemize your deductions and kept a record of your winnings and losses. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings.

Yes, every dollar you win is a taxable event for your federal tax return and possibly your state return.

• IRS Topic 419 Gambling Income and Losses

Enter the gambling winnings using the steps below.

1. Sign into your TurboTax Online/Mobile or TurboTax Desktop account
2. Select Tax Home  (on the left) > Income & Expenses > Less Common Income > Gambling Winnings > Start
   1. TurboTax Desktop start with Income > Less Common Income > Gambling Winnings
3. Follow the screen prompts based on your situation (reporting document or none)
4. Be prepared with your gambling losses as well but they may or may not affect your tax return.  If you itemize deductions it could help.