Understanding Your Tax Obligations for DFS Winnings
Congratulations on your winnings! As part of enjoying Daily Fantasy Sports, it's important to stay informed about the tax implications of your success.
Here’s what you need to know:
Reporting Winnings: If you have net winnings that exceed $600 over the course of a calendar year (Jan 1 - Dec 31), our platform will issue a Form 1099-MISC. This amount is taxed as “Other Income”.
Form 1099-MISC: This form is used to report miscellaneous income, such as your DFS net winnings to the Internal Revenue Service (IRS).
Your Responsibility: You are required to report the earnings listed on your 1099-MISC when filing your taxes. The amount on the form should be included in your total income for the year. This amount is taxed as “Other Income”.
Tax Withholding: In certain cases, federal and state tax may be withheld from your winnings. If this applies to you, it will be reflected on your 1099-MISC.
Record Keeping: It’s wise to keep detailed records of your DFS play, including wins and losses, to support your tax filings.
Please consult with a tax professional to understand how this impacts your personal tax situation.
If you haven’t received a 1099-MISC form for the previous year by the end of February and believe you should have, please contact our Customer Service team by emailing support@dabble.com.
Remember, staying on top of your tax responsibilities is as important as playing the game.