I reported my gambling wins and losses already, so I’m worried about being taxed twice. The 1099-k shows income of $116,987.68.
The W-2G only shows $12,090. But the activity statement I downloaded from the sportsbook shows the below…
Amount Deposited: $166,397.79
Amount Played: $871,428.11
Amount Won: $821,315.04
Amount Withdrawn: $116,287.68
Just to be clear on my ask… how do I show the IRS that the “income” on my 1099-k, is related to my gambling withdrawals? If I’m reporting my gambling wins and losses (net loss for the year)… how do I show that on my tax return so I’m not paying taxes on the “income” from the 1099-k?
As you can see above, the 1099-k is nearly identical to the amount withdrawn from my sportsbook. I’m just concerned how I can offset this since the W-2G amount is much smaller than the 1099.
You must report the information on your 1099-K. The IRS receives a copy of your 1099-K and will take action if you do not report the 1099-K on your tax return.
You may report any items on your 1099-K unrelated to business activities, such as payments to friends and family, coffee & donuts from the local store, payments to local stores, etc., as other income.
You will need to make two entries for your non-business items; one as a positive amount to show the personal items reported on the 1099-K, the second as a negative value. This reports the personal 1099-K items and removes them from being taxable income.
To enter your personal 1099-K items, sign in to your TurboTax account if it is not open and follow these steps:
Repeat the above steps this time; in step 6, add the amount as a negative value.
This will report your personal 1099-K items and remove them as taxable income. Any remaining amount will be reported as business income.