1099k that includes winnings

[TH2002]

I’ve seen a similiar question but didn’t understand it for my situation. I received a 1099-K from PayPal. 12500 of the 13500 is from Sportsbook winnings which were several small amounts that didn’t generate at W-2G. If I enter the 1099K and label it as PayPal then enter the 13500 in box 2a of 13500, how do I then claim the losses which is more than that amount. Then the other $1000 which was money received from selling a fish finder on market place. I know I can enter gambling winnings and losses under other income but then what do I do with the 1099-k since it ask for the amount in box 2a. I have all my documentation but just want to make sure I enter it correctly. Thanks

[PattiF]

Here are the instructions from LenaH to report your gambling income:

To report your gambling winnings on your tax return, complete the following steps in TurboTax:

1. Open your return.
2. Search for Other Income with the magnifying glass tool on the top of the page.
3. Select the Jump to Other Income link in the search results.
4. Select No to the question Did you get a 1099-MISC?
5. Scroll down to Gambling Winnings under Less Common Income.
6. Click Start next to Gambling Winnings. 
7. Choose Yes to the question Did you win money or prizes from gambling or lotteries during 2020?
8. Choose I did not receive a W-2G.
9. Follow the on-screen instructions to enter your data. 
10. After you enter your gambling or lottery winnings that weren't reported on W-2G, you can enter your Gambling Losses on the next screen. 

You can deduct gambling losses up to the amount of your gambling winnings. In addition, your gambling losses will only be able to be deducted on Schedule A if you itemize your deductions, as opposed to taking the standard deduction. For more information, please see Can You Claim Gambling Losses on Your Taxes?

The sale of the fish finder would be reported as miscellaneous income as the sale was not a business sale for you.

You can enter the cost of the item as a negative number for the second entry. But, the cost of the item can't be greater than the $1000 that you received for the item.

1. In the Wages & Income section, scroll to Less Common Income
2. Choose Miscellaneous Income, 1099-A, 1099-C, and Start
3. Choose Other Reportable Income, and Click on Yes on the Next Page
4.  In Other Taxable Income, Enter 1099-K Personal Items Sale, $1000
5. Continue and Add Another Miscellaneous Income Item,
6. Enter Personal Items Sold Reported on 1099-K, -$1000

This will result in no taxable income if you sold the item for less than you paid for the fish finder. If you made a profit, that will be the taxable amount.

[TH2002]

Thank you but I am still not clear on how to enter it. I received a 1099K that has the winnings from draftkings. So how do I show that money is from winnings because the 1099K says it’s from PayPal and shows each month of money transferred to PayPal. There is no W-2G for it. So if enter that as gambling winnings/losses then enter again when I enter the 1099-K then it seems to me I would be entering it twice essentially.

[ColeenD3]

Those were not the instructions given by Patty F. The first option she gave for gambling is correct. The second set is regarding the sale of the fishfinder. Since the gambling was not reported on a W-2G, you have to do a workaround, which was described by adding the winnings and then the losses.

[TH2002]

I know that wasn’t the instructions, I was just confused if I don’t ever my 1099k total amount of 13500 on the form 1099k that it would cause me to her audited. I appreciate all the help, I was just to understand it. 

[Hal_Al]

There is no specific place on the tax forms to account for a  1099-K.  A 1099-K can be for any number of reasons, or multiple reasons.    You are expected to know why you got the money (and the 1099-K) and enter it in that place(s) in TurboTax.  In your case, you need to separate the amounts and enter in (at least) two places. 

[TH2002]

Thank you. I think I was getting caught up on entering the 1099k as I recieved it and in my case that isn’t proper. Thanks for helping me through it. I appreciate all the responses.