DraftKing Sportsbook

[kendjrpa]

I do my families taxes - in 2019 one son was online betting.  I received a summary of his activity (and am receiving a spreadsheet with each transaction).   In talking with the Casino their opinion is he did not have any reportable income.   The summary record is below - how do I enter the information into Turbotax (if at all)? 

SBWagers $21677

SBWinnings $20502

WinLoss -$1174.89

GamingDeposits $2003

GamingWithdrawals $669

Net Loss: -$1334.58

[Anonymous]

SBWagers $21677   = money wagered

SBWinnings $20502 = money won

WinLoss -$1174.89 = net loss (21677-20502=1175)

GamingDeposits $2003 = money wagered

GamingWithdrawals $669 = money won

Net Loss: -$1334.58 = net loss (2003-669=1334)

i totally disagree that he had no reportable income or deductions. 

winnings  20502 + 2003

losses on schedule a limited to winnings  20502+2003

you can not net winnings and losses.  winnings must be reported gross and losses are limited to winnings and are only deductible if one itemizes.

[kendjrpa]

I don't understand how there can be so much discrepancy on this!   Where should I get the definitive answer? 

Thanks though, I appreciate your response. 

[kendjrpa]

To add to the discussion, I asked for a W2G to be generated and they said they won't, he didn't qualify for one!

[Carl]

Based on the winnings, per the instructions at https://www.irs.gov/pub/irs-pdf/iw2g.pdf a W-2G is not required. But that doesn't negate the requirement to report it to the IRS.

Reportable Gambling Winnings

Report gambling winnings on Form W-2G if:

1.The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine;

2.The winnings (reduced by the wager) are $1,500 or more from a keno game;

3.The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament;

4.The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:a.$600 or more, andb.At least 300 times the amount of the wager; or

5.The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).

[Anonymous]

you could call the IRS, upgrade to live, or wait to see other responses. 

https://ttlc.intuit.com/questions/4124827-how-do-i-connect-with-a-tax-expert-in-turbotax-live

the reason no w-2g there was probably no one bet where he won more than the threshold for issuing the form. 

[heretohelp]

He wagered more than he won. There is no reportable income. 

[Anonymous]

i take back my original answer.   

actually i believe the correct way is that you have to look at each separate bet

bet 100 win 90 net loss 10 - may be used on schedule A to offset taxable winnings

bet 100 win 150 net win 50  - 50 is taxable winnings  

so if he lost money on every bet, there's nothing to report.