RobertB4444
Expert Alumni

Get your taxes done using TurboTax

Gambling winning are taxable by the federal government.  You should receive form W2G from the company running the online casino with your winnings on it.  If you get that form you have to report it. 

 

This 1099-K you do not have to report.  You may get questions about it in the future.  Save any proof that you have that this wasn't income and instead was money that you simply transferred to yourself.  If the IRS questions it in the future then you will have to have proof handy.

 

If you really want to include it on your tax return then you will use TurboTax Self-Employed.  You will create a business showing the income on the 1099-K as income paid to you in exchange for whatever you create the business to do.

 

Then you will create an expense for the exact same amount showing that your business spent the money on something necessary for the business.  This brings the taxable amount received down to zero.

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