My son received a 1099-K from Paypal for small time winnings from sport wager sites, such as Draftkings, etc. This is done as hobby and not a business. The total is under $2500 from 30 transactions. However, they don't include the amounts he put in to make the sport wagers. In other words, he did not make even close to $2500. How would he report this in TurboTax in order to show the IRS he didn't earn that much in income?
I got to the Here's what to do with your Form 1099-K and it says TT doesn't need to create a separate entry for the 1099-K. That's because it would already be included in other income, such as self-employment or rental income. The amount indicated is from neither of those.
Any help would be appreciated. Thank you.
