I deposited 2000$ in Draftkings and bet it all and lost it all. For a loss of -2000$
I deposited 5000$ in Caesar and won 5000$. I then withdraw all 10000$ (deposit + winning).
I read if winnings over 600$, betting sportsbook has to send IRS a W2G.
By my understanding, that means Draftkings will NOT send a W2G, while Caesar will send a W2G of 5000$ winning.
By that logic, I am on the hook for tax on 5000$ earnings, even though i placed 7000$ total (Draftking + Caesar combined), and my net win is only 3000... but I have to pay tax on 5000$? Assuming a 50% tax rate, of 2500$ my net profit after taxes will be 500$?
Is this correct?? Or is there a place on IRS form to enter deposits across all sportbooks?
How does this work?
