1099-c Tax Question (1 Viewer)

[cubd8]

I recently won $750.00 in a fantasy basketball league, and received a 1099-c tax form for my taxes next year.

How much of that total does the government collect?

Thank you!

 

[the rover]

You can offset gambling winnings with gambling losses.  Go to the track and pick up $750 in losing tickets 

 

[IC FBGCav]

You can offset gambling winnings with gambling losses.  Go to the track and pick up $750 in losing tickets 

This is not true.

 

[IC FBGCav]

Plus it should be a 1099 misc

 

[Juxtatarot]

That 1099-C is from a creditor you stiffed.

 

[the rover]

This is not true.

Is if you itemize.  Always has been.

Linkapotamus

 

[IC FBGCav]

You can only deduct gambling losses if you itemize deduction.   Even then there is a lot of grey area.

 

[IC FBGCav]

Is if you itemize.  Always has been.

Linkapotamus

Notice fantasy sports are not mentioned.

 

[IC FBGCav]

Some people say you can only write off your buyin in fantasy sports and losses from other leagues are not able to be written off.  I have looked at this a lot, much grey area.

 

[the rover]

Do you have a link to an IRS ruling that fantasy football winnings aren't gambling winnings?  Last I heard there wasn't one.  

 

[IC FBGCav]

Do you have a link to an IRS ruling that fantasy football winnings aren't gambling winnings?  Last I heard there wasn't one.  

IRS Letter Ruling Offers Some Clues
Unfortunately, the IRS does not have a definitive ruling on the treatment of fantasy sports income and losses, and there is very little, if any, authority for the proper reporting on tax returns. The only thing that can be pointed to would be IRS Letter Ruling 200532025. This letter ruling discussed the various methods of reporting winnings by a taxpayer who ran a site for online game-playing tournaments.

According to the letter ruling, the three possible reporting methods are:

1.The gross method. The site operator reports the total of all winnings for the year on Form 1099-MISC, Miscellaneous Income (if the player wins $600 or more).

2. The net method. The site operator reports the total of all winnings for the year and subtracts the entrance fees from winning contests only. These are also reported on Form 1099-MISC, assuming the net amount the player wins exceeds $600.

3. The cumulative net method. The site operator reports the player’s total winnings less all entry fees for the year, regardless of whether the participant received a prize.

 

[IC FBGCav]

As I said very grey area.

 

[MarvinTScamper]

Whatever rate you pay on the last dollar you earned you pay on this 750

 

[cubd8]

So...how much of the 750 will the government get back? 

 

[the rover]

Depends on your tax rate, and whether you're willing to report it as gambling and offset it with losses.  If you don't itemize, you're going to lose whatever percent you're taxed at.  If you do and you offset losses, nothing, but if they decide to audit you you'll have to hope that they fall in your side of the grey area.  For the taxes on $750 I wouldn't think it would be worth raising a red flag

 

[the rover]

But I've always offset winnings with losses and never had an issue 

*mine have been a combination of fantasy and horses