I am unemployed and play video games as a hobby, I received a 1099K from Paypal for money I won playing. Do I have to file a tax return? And if so, how do I do that?

[woodsres18]

I am a part-time student and live with my mom, she claims me on taxes

[Vickieval07]

Hi!  The best way to determine if you have to file is to go to the website link below and complete the short questionnaire.   It's the best way because everyone's situation is a little different.  I wouldn't want to give you advice that turns out to be incorrect:)

https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return 

[ToddL99]

See @Vickieval07 response above. 

How much did you receive from PayPal for your gaming activities?

[ErnieS0]

Yes. Hobby income is taxable, so you have to report it. PayPal sends a copy of Form 1099-K to IRS so they will know about it @HarperGriffin.

1. Tap Federal in the left column
2. Select Wages & Income at the top
3. Go to Less Common Income
4. Start Miscellaneous Income, 1099-A, 1099-C
5. Select Hobby income and expenses

[KerryLuis]

I hope you're doing fine now but I still wanna add that if you received a 1099-K form from PayPal for your gaming winnings, then you do have to report that on your taxes. The amount that needs to be reported is the total amount you received through PayPal, not just the amount you won playing games. Since you're a part-time student and live with your mom, she may claim you as a dependent on her taxes, but you still need to file your own tax return if your earnings meet the IRS filing requirement. You can use a tax software or hire a tax professional to help you file your tax return. I use this scheme to get the money I win at [Bingo Cash link removed]w/  with minumum loss and it does work because I also live with my mom.

[BGenzo]

Hi. If the amount that you earn from playing games is less than $600, do you have to file it. Married filing joinly

[DMarkM1]

It depends.  Since you mentioned married filing jointly both yours and your spouse's incomes together are considered when determining filing requirements.  If you meet the tax filing requirements your income would include any income even if only $1 unless the income is specifically excluded by IRS rules.  Game playing and/or hobby income is taxable income thus not excludable. 

Generally you are required to file if your income exceeds the standard deduction for your filing status. For married filing jointly for tax year 2024 that is $29,200.  For married filing separately, however, the threshold is $5.       

Assuming you and your spouse together (or separately) meet the filing requirement you would include your hobby income in the "Miscellaneous income" topic using the "Hobby Income" item.    

The $600 number you mention is the threshold for payers to report payments to non-employees on a form 1099-NEC or rent payments or prize/award payments, etc on a form 1099-Misc.  Whether you receive one of these forms or not is not a determining factor for filing the income on your returns. 

For more detailed information see Table 1, IRS Publication 501 here.