How do I enter my winnings from Draft Kings (Daily Fantasy Sports)? I received a 1099-MISC form. Do I enter it under 1099-Misc or Gambling Winnings?

[mliddell44]

turbotax seems to be recognizing it as business income when I enter it in the 1099-MISC income field. What is the best way to report the winnings?

[Phillip1]

This should not be reported as business income. This would either be treated as prize money from a hobby or as gambling income, and they are both reported as other income on line 21 of form 1040.

To enter this income as a miscellaneous income item, follow this path in the program:

1. Go to Federal Taxes category.
2. Go to the Wages and Income subcategory
3. Find the section labeled Less Common Income 
4. Click start or update next to the line labeled Miscellaneous Income, 1099-A, 1099-C if there is no losses or expenses.

• If there are expenses, click on the line for Gambling Winnings.
• Click no, there was no W-2G.
• Yes, there was money or prizes from gambling or lotteries.
• Click Skip W-2G
• Click yes, there was winnings not reported on a W-2G
• Enter the winnings.
• Enter the losses or expenses on the subsequent screen.

 Click start or update on the line labeled other reportable income.

Click yes, you have income to report.

Enter the description (Prize money) and the amount.