topic 1099-K from Paypal from gambling online DFS in Get your taxes done using TurboTax

1099-K from Paypal from gambling online DFS

nawfmiro — Tue, 28 Jan 2025 01:52:40 GMT

Hello,

I received my 1099-K from PayPal today. The total is about $65k. 100% of these transactions were from gambling on daily fantasy sports apps. I ended up being down for the year, about $5k or so. How would i go about cancelling out the $65k? It seems weird that if i itemize my losses ($65k) , it would be better instead of taking the standard deduction since i'm married. I keep seeing mixed things about it.

Right now, i went into the "Gambling Winnings" > Did not receive a w2-g (because i didn't win anything) > i put in the amount of the 1099k > i then reported the whole 1099k as gambling losses.

Is this the proper way to do it? Seems weird to itemize $65k when my standard deduction would be way less.

Re: 1099-K from Paypal from gambling online DFS

JamesG1 — Tue, 28 Jan 2025 02:30:12 GMT

It is possible to report the IRS form 1099-K income as incorrect by entering the 1099-K as other income and selecting This amount in box 1a is too high or includes some personal transactions.

In TurboTax Online, you would report other income by following these directions.

Down the left side of the screen, click on Tax Home.
Click on the down arrow to the right of Review.
Click on the blue band labeled Review.
Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Scroll down to Other Common Income click on the dropdown menu.
Under Your income and expenses, click the button to the right of Form 1099-K.
At the screen Did you get a 1099-K? click Yes.
At the screen How would you like to enter your 1099-K? click Type it in myself. Click Continue.
At the screen Choose which type of income your 1099-K is for, select the button for Other income. Click Continue.
At the screen Let’s get the info from your 1099-K, enter the information.
Note the box "This amount in box 1a is too high or includes some personal transactions."
Click Continue.
At the screen Your Other 1099-K income, you enter further information for the Other income. Click Continue.
At the screen Your 1099-K summary, notice that the income relates to Other income. Click Done.

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

At the top of Schedule 1, note the amount reported in error or for personal items sold at a loss.

The IRS form 1099-K for $65,000 represents distributions from gambling winnings. You are reporting $65,000 as gambling winnings and you are explaining that you did not receive an IRS form W-2G.

You are reporting the full $65,000 distribution which you should be able to explain should the IRS question your return. To document your winnings and losses, the IRS requires that you maintain a log of your winnings and losses as a prerequisite to deducting losses from your winnings. Your winnings include each win during the year.

See TurboTax Help.

Re: 1099-K from Paypal from gambling online DFS

salam00n — Tue, 28 Jan 2025 19:04:02 GMT

did you find out how to file tax with your 1099k from paypal ? I have the same problem, hope that you can help me out.

thx

Cuong

Re: 1099-K from Paypal from gambling online DFS

nawfmiro — Tue, 28 Jan 2025 19:08:40 GMT

nope not any luck finding a way. i keep seeing mixed things

Re: 1099-K from Paypal from gambling online DFS

salam00n — Tue, 28 Jan 2025 19:14:49 GMT

I deposit using my credit card in to these few website for playing slot game/poker and then withdraw them to paypal, most of the money I withdraw is from my credit card deposit. I lost more than winning, now my paypal form 1099k showing me withdraw of 65k. I really need some help with this issue, dont want to pay tax for 65k.