I use PayPal (like many people) to deposit and withdraw money with legal gambling websites. PayPal is now reporting the withdrawals on 1099-K. These are not necessarily winnings. They are just withdrawals. You can deposit $100 to DraftKings through PayPal, and then immediately withdraw your $100 through PayPal. You don't even need to make a bet.
In the above example, the $100 withdrawal from PayPal is a payment to me, so it's included in 1099-K and shows up as additional income in my 1040. How do I offset that income?
