topic Turbotax blog post on gambling winnings is completely wrong in Tax law changes

Turbotax blog post on gambling winnings is completely wrong

ST424 — Wed, 11 Jan 2023 23:55:44 GMT

Among other factual errors and grammar mistakes, the article says:

“If you take home a net profit exceeds $600 for the year playing on websites such as DraftKings and FanDuel, the organizers have a legal obligation to send both you and the IRS a Form 1099-MISC.”

Sportsbooks will only produce a 1099 if you have a SINGLE wager that is BOTH at odds of 300-1 or more AND results in winning $600 or more. There is no 1099-MISC filed for net winnings on the year, which the article incorrectly states. This article should be corrected or taken down immediately.

Source: IRS.gov and direct conversations with relevant sportsbooks in early 2023.

Link to article: https://www.shorturl.at/coIJS

For some reason, links do not work, so please Google:

"Sports Betting Taxes Guide (How to Pay Taxes on Sports Betting)"

It's the very first result.

Re: Turbotax blog post on gambling winnings is completely wrong

Bsch4477 — Thu, 12 Jan 2023 00:08:40 GMT

https://help.draftkings.com/hc/en-us/articles/4414347431955-What-are-the-1099-Misc-reporting-thresholds-for-DraftKings-Daily-Fantasy-Sports-winnings-

What are the 1099-Misc reporting thresholds for DraftKings Daily Fantasy Sports winnings?

If you have greater than $600 of net earnings during a calendar year, you can expect to receive an IRS Form 1099-Misc from DraftKings no later than February 28th. This form will include all net earnings from the prior calendar year.

Re: Turbotax blog post on gambling winnings is completely wrong

BillM223 — Thu, 12 Jan 2023 00:20:49 GMT

Where did you see on IRS.GOV that someone should issue a 1099-MISC for each win over $600? That's not the way the IRS wants you to operate.

On the IRS page about the 1099-MISC, it says:

"File Form 1099-MISC for each person to whom you have paid during the year (emphasis mine):

At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
At least $600 in:
- Rents.
- Prizes and awards.
- Other income payments..."

That is, if the sports website has paid in the aggregate $600 or more to a bettor over the course of the year, the sports website will send the bettor and the IRS (each) a 1099-MISC. If a bettor wins three bets of $201 each, he/she would receive one 1099-MISC for $603. If the bettor wins three bets for $601, the bettor will get one 1099-MISC for $1,803, not three 1099-MISCs for $601.