Daily Fantasy Sports Taxes
PDFS September 21, 2015
It’s become a common question for any new players starting to make money in DFS – Do I Have To Pay Taxes On My Daily Fantasy Sports Winnings?
Well like they say nothing is certain in life but death and taxes and the reality is if you make a buck doing anything in life, the government will want their cut. Tax laws vary from state to state and country to country so whether you have to declare you daily fantasy sports income to the government is on a case by case basis. Making money playing daily fantasy sports is still deemed income so depending on how much you earn will determine if there is a paper trail that leads to you regarding your winnings.
The Magic Number is $600
The Internal Revenue Service (IRS) established $600 as the threshold that triggers the issuance of a 1099 form from a payor to a payee, which is typically for services rendered. Although there are no specific tax rules governing daily fantasy sports income, it is probably best to keep in mind that if you earn more than $600, you may be best to claim it. Fantasy sports income does not have a specific form so you use the 1099-MISC as a default which covers everything. If you earn a minimum of $600 from any DFS site (ex. Draftkings) they will mail you the 1099-MISC tax form by January 31.
The information provided above is not that of a certified tax expert and you should seek your own income tax representation and advice to verify the tax laws in your state, city, province or country. There are now sites that are dedicated to helping daily fantasy sports players and their tax claims.
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