I am unemployed and play video games as a hobby, I received a 1099K from Paypal for money I won playing. Do I have to file a tax return? And if so, how do I do that?

I am a part-time student and live with my mom, she claims me on taxes

Get your taxes done using TurboTax

Hi!  The best way to determine if you have to file is to go to the website link below and complete the short questionnaire.   It's the best way because everyone's situation is a little different.  I wouldn't want to give you advice that turns out to be incorrect:)

https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return 

ToddL99
Expert Alumni

Get your taxes done using TurboTax

See @Vickieval07 response above. 

 

How much did you receive from PayPal for your gaming activities?

ErnieS0
Expert Alumni

Get your taxes done using TurboTax

Yes. Hobby income is taxable, so you have to report it. PayPal sends a copy of Form 1099-K to IRS so they will know about it @HarperGriffin.

 

  1. Tap Federal in the left column
  2. Select Wages & Income at the top
  3. Go to Less Common Income
  4. Start Miscellaneous Income, 1099-A, 1099-C
  5. Select Hobby income and expenses
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KerryLuis
New Member

Get your taxes done using TurboTax

I hope you're doing fine now but I still wanna add that if you received a 1099-K form from PayPal for your gaming winnings, then you do have to report that on your taxes. The amount that needs to be reported is the total amount you received through PayPal, not just the amount you won playing games. Since you're a part-time student and live with your mom, she may claim you as a dependent on her taxes, but you still need to file your own tax return if your earnings meet the IRS filing requirement. You can use a tax software or hire a tax professional to help you file your tax return. I use this scheme to get the money I win at [Bingo Cash link removed]w/  with minumum loss and it does work because I also live with my mom.