Received a 1099K From PayPal But Actually Lost Money On The Year

[turbo651]

So I received a 1099K form from Paypal for the first time saying I had a gross amount of transactions of $12,000. On the form it has the follow boxes checked: Payment Settlment Entity (PSE) and Third Party Network.

All the transactions were from daily fantasy sports, specifically DraftKings. Each transaction being a time I cashed out winnings throughout the year. However, my net total on DraftKings for the year is a loss of -$1000.

So, I'm not sure how to handle this. Do I still have report this on my taxes or is there some other form I have to fill out to detail the loss?

[LeonardS]

To enter your PayPay 1099-K amount and deduct your losses from daily fantasy sports, follow these steps: 

Sign in to TurboTax and open (continue) your return

Select Federal from the left menu

In Wages & Income (Income & Expenses if you’re using TurboTax Self-Employed), scroll down to Less Common Income and select Show more

Select Start next to Miscellaneous Income, 1099-A, 1099-C

Select Start next to Hobby income and expenses

Answer Yes to Do you have hobby income or expenses?

On the next screen, enter the Total income reported on your Form 1099-K and select Continue. Don't enter any expenses.

Select Done on Love your dedication—here’s what we’ve got for your hobby

To deduct the cost of the items sold: while still in Miscellaneous Income, select Start next to Other reportable income

Select Yes on Any Other Taxable Income?

On the next screen, enter Form 1099-K in the Description field. Enter the total cost of the items sold in the Amount field as a negative number. Note that the amount can’t exceed the income reported on Form 1099-K. 

This TurboTax Link How do I report a 1099-K if I don’t own a business?