If you win money betting on sports from sites like DraftKings, FanDuel or Bovada, it is taxable income and should be reported on your tax return. If you itemize deductions, you can claim gambling losses up to the amount of your reported winnings (see the attached article for additional details),
If your winnings are $600 or more, the payor should send both you and the IRS a tax form (1099-MISC) or a Form W2-G, Certain Gambling Winnings. If you receive your winnings through PayPal, the reporting form may be a 1099-K.
The 1099 tax forms (or Form W-2G or 1099-K) report your winnings to the taxing authorities and also let you know the amount you must report on your taxes. Even if you don’t receive a Form 1099, you still need to report the net profits on your federal and state income tax returns.
If you receive a Form 1099-MISC for gambling winnings, enter it in the 1099-MISC interview (Other Common Income tab under Income and Expenses section). In completing this interview, remember this type of gambling income is generally not related to your trade or business, did not involve an intent to "earn" money ("earning" implies "working"), and was not a recurring form of income (received in the past or expected in future). Answering the interview with these facts in mind will avoid having the program think you owe employment taxes on gambling/gaming winnings.
If you receive a Form W-2G (or didn't receive any tax forms), you would enter your winnings in the Gambling Winnings interview under the Less Common Income tab of Income and Expenses section.
Again, for additional details, see: Sports Betting Taxes Guide (How to Pay Taxes on Sports Betting)
