What to do with form 1099-K from PayPal

[dc762]

My wife and I use our PayPal accounts to fund online sports betting applications.

We repeatedly deposit/withdraw funds from applications as well as transfer money in between our betting applications. We just received our 1099-K forms from PayPal which show a much higher income than the profit we made from betting because of these repeated transfers.

Is there a way I can addend this form to reflect that?

[MinhT1]

Do not enter this form 1099-K.

Report your betting income but keep records so that you can justify your betting income in case of an audit.

[Hal_Al]

Q.  Is there a place for a 1099-K on turbo tax?

A.  No. A 1099-K can be for any number of reasons.  You are expected to know why you got the money (and the form) and enter it in that place in TurboTax.

Gambling winnings are taxable income.  So much so that there is a line for it (line 8b ,Schedule 1) on the tax forms and an entry point in TurboTax*.  You must report your gross gambling winnings as income, not your net after losses. The losses are deducted separately on Schedule A (itemized deductions).

*In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

-Less Common Income

      -Gambling Winnings

[dc762]

Thank you for your response. 
I understand that income from betting is taxable and I will report that income.
My main concern was regarding the form 1099-K since the amount on it is the result of repeated transactions (deposits/withdrawals/transfers), not necessarily income that was generated. 

[Hal_Al]

The Government rules on expanded 1099-K reporting are new this year.  We don't know what the IRS is going to do them (they will be overwhelmed).  

But the bottom line, for now, is: there is nowhere on the tax forms to account for a  1099-K.