Patrick Michael Posted March 30, 2016 Report Share Posted March 30, 2016 Client received a 1099 from Draftkings with an amount in box 3 (other income). The amount was equal to his winnings for the year less his entry fees. Now that several states (including NY, where client lives) consider fantasy sports a form of gambling, can other gambling losses be claimed on schedule A, up to the amount of fantasy winnings. From what I found during a Google search there seems to be disagreement as to whether or not gambling losses can be deducted in this case. Just wondering what others think and if anyone else has run into this and how they handled it. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 30, 2016 Report Share Posted March 30, 2016 that's an interesting topic. So on the NY return, it is illegal income and then what? subject to criminal prosecution? The ban came into effect in November. When did he win? would it make a difference on how you report it? If he won in October then its other income with no offset. If he won in November we can take other gambling on Schedule A? Quote Link to comment Share on other sites More sharing options...
Roberts Posted March 31, 2016 Report Share Posted March 31, 2016 I believe you'd have a deductible expense on Schedule A line 23. If you received a form declaring it gambling winnings - then you deduct gambling losses. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 31, 2016 Report Share Posted March 31, 2016 Income reported on 1099-MISC cannot be filed as gambling winnings. Gambling winnings are reported on W-2G. Line 21 and NO DEDUCTION for losses. Fantasy football is NOT GAMBLING. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 1, 2016 Report Share Posted April 1, 2016 I think Jack is right, at least as far as the Feds are concerned. Just because a few states have re-classified it does not change the feds stand on it. Maybe a difference on the state return? Quote Link to comment Share on other sites More sharing options...
easytax Posted April 1, 2016 Report Share Posted April 1, 2016 Accounting Today had a decent article on gambling vs: pools //// interesting read. "Taxing March Madness Pools Is Not a Slam Dunk" addresses several of the questions/comments here. http://www.accountingtoday.com/news/tax-practice/taxing-march-madness-pools-is-not-a-slam-dunk-77652-1.html?taxpro=1&utm_medium=email&ET=webcpa:e6416530:2544660a:&utm_source=newsletter&utm_campaign=tax%20pro%20today-apr%201%202016&st=email 1 Quote Link to comment Share on other sites More sharing options...
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