Hello all, I have a few questions about how sports betting earnings are taxed. For reference, I live in Colorado and only bet through regulated sportsbooks that are registered with the Colorado Gaming Commission.

I mostly use Fanduel and have losses of $2,580 on Fanduel and a loss of $1,000 on WynnBet in 2021. I have a couple futures bets on FanDuel in play for the 2021 NFL season. I bet in the first week of September and am still live for picking the winners of 7 divisions. Should I win one of these, I will win a total of $11,500 on a $208 bet. Now here are my questions.

1. Does each sportsbook send a W-2G for your aggregate win (wins minus losses)? Example: let's say I won $2,000 on Fanduel but lost $1,000 on Wynnbet. I can't deduct the $1,000 loss from the $2,000 win because they're different sportsbooks? However, if I was only betting Fanduel the entire year and had losses of $2,580 before winning a bet for $11,500. Fanduel would send me an aggregate W-2G for only $8,920 which i would need to report as gambling income (wins minus losses)?

2. If I make a futures bet in 2021 but win the bet in 2022, how do the taxes work in that instance? Does it go on my 2021 or 2022 tax form? And because the bet and win would be in 2 different years, would I be able to subtract my losses in 2021 leading up to the bet that pay outs in 2022 the same way as if the bet and payout were in the same year?

Ok to start I am not an accountant and this isnt tax advice

1. I believe they send you a 1099. They should send you a number with your aggregate winnings - losses on their site. If you had losses on another site, there should be an area on your tax form where you can report that. You should only be paying taxes on your total net winnings.

2. This would be applicable to your 2022 tax year. You would subtract your losses in 2021 from your other income on your 2021 tax form.

A tax professional could easily walk you through all of these things however

Any reliable Nevada Gaming Tax Professional that people have used?

Not a tax pro, but pretty sure you got some of this wrong.

FanDuel won’t send a W2g just for winning $10k.

You can’t write off the gambling losses against other income, only against gambling winnings.

If the bet wins in 2022, it’s 2022 income.

Last year I was positive 10k on FanDuel and -7k on DraftKings.

The standard deduction for an individual is something like $12,500. DFS is not my main source of income. Since the -7,000 was less than the standard deduction, I choose to not deduct it on my tax return.

Does that make any sense?

I received a 1099-K for my legal sportsbook activity through PayPal this year. The issue is the PayPal transactions show the total amount of all withdrawals from any sportsbook, including the deposited amount.

For example, if I were to deposit $500 onto a book, place a wager that wins $500 and cashout $1,000, that is recorded as $1,000 on the 1099-K. Rinse and repeat for a full year and this can get out of hand pretty quickly. Without getting into specific numbers, I’ll say that the amount reported on my 1099-K is 4x my actual winnings for the year. Any idea how I’m supposed to reconcile this?

Just report your actual basis. If the IRS gives you **** about it, show them the deposits. Or preclude them giving you **** about it by attaching the deposit logs to your tax return.

PayPal sent you this unprompted? I've never heard of this happening.

Yes, new reporting requirements.