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Will DraftKings send me a 1099?

Fantasy sports winnings of $600 or more are reported to the IRS. If it turns out to be your lucky day and you take home a net profit of $600 or more for the year playing on websites such as DraftKings and FanDuel, the organizers have a legal obligation to send both you and the IRS a Form 1099-MISC.

turbotax.intuit.com - Tax Considerations for Fantasy Sports Fans - TurboTax Tax Tips & Videos

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Make Your Bookie Cry And Pull The Hair By Generating $23,187

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OVERVIEW

Fantasy sports leagues can yield hefty winnings if Lady Luck smiles on you. If you win big—or even not so big—you'll need to save a portion of that money for the Internal Revenue Service (IRS). What many don't realize, is that those net winnings constitute taxable income.

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Fantasy sports winnings of $600 or more are reported to the IRS

If it turns out to be your lucky day and you take home a net profit of $600 or more for the year playing on websites such as DraftKings and FanDuel, the organizers have a legal obligation to send both you and the IRS a Form 1099-MISC. If you receive your winnings through PayPal, the reporting form may be a 1099-K. The 1099 tax forms report your winnings to the taxing authorities and also gives you information for completing your taxes. Even if you don't receive a 1099 form, you are still required to report all of your income on your federal and state income tax returns. Beginning with tax year 2022, if someone receives payment for goods and/or services through a third-party payment network, their payments are required to be reported on Form 1099-K if more than $600 was processed during the year. Those payments can include income as a result of business (self-employed, independent contractor, freelance, gig-work), real estate rental, hobby sales, personal item rental or sale. Organizers typically calculate players' net profits using a formula Fantasy sports organizers must figure out players' net profits in order to determine who gets 1099 forms. They use a formula to determine when a player hits the $600 level: Prizes won minus entry fees plus bonuses = net profit. Another way to calculate this is: (Withdrawals + Year End Account Balance) - (Deposits – Beginning Year Account Balance) = net profits. Reporting income or loss from fantasy sports on Form 1040 You are required to report all income earned from fantasy sports either as "other income" on Schedule 1 for Form 1040, or as business income on Schedule C. If you use the first approach, your fantasy sports is considered a hobby and you can't deduct any of your expenses or losses.

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How much money do gambling addicts spend?

According to the National Council on Problem Gambling (2022), $7 billion is spent annually for gambling addiction for what it calls the “social costs” of addictive gambling. As is the case with alcohol and drug addiction, gambling addiction perpetuates criminal activity, job loss, family trauma and health care costs.

ctpost.com - Opinion: Don't overlook price of gambling - Connecticut Post

Since October 2021, your article reports that due to the expansion of sports bets and online casino betting, Connecticut took in $45 million. At first glance this sounds like a win-win for everyone, no pun intended: gamblers enjoy betting on sports using just their phones or computers, the state rakes in revenue. This would seem to justify the decision to expand online and in-person sports betting. The problem is this: The social costs which inevitably arise from gambling addiction are hidden. According to the National Council on Problem Gambling (2022), $7 billion is spent annually for gambling addiction for what it calls the “social costs” of addictive gambling. As is the case with alcohol and drug addiction, gambling addiction perpetuates criminal activity, job loss, family trauma and health care costs. As is the case with drug and alcohol addiction, most addicts are from low-income populations and communities, and so-called broken homes. The psychological response to compulsive gambling is almost identical to that of drug/alcohol addiction. The long-term effects of gambling addiction not only impact the addicted individual and her/his family, but financially impact the state far more than $45 million.