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.
Hereās 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 āOther Incomeā.
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 āOther Incomeā.
Tax Withholding: Dabble US does not withhold taxes from your winnings. You are responsible for reporting and paying any applicable taxes when filing your tax return. Record Keeping: Itās wise to keep detailed records of your DFS play, including wins and losses, to support your tax filings.
Form W-9 Requirement: To facilitate tax reporting, you are required to provide your Taxpayer Identification Number (TIN) by completing a W-9 form. Without completing the W-9, withdrawals of winnings cannot be processed.
Net Winnings Calculation: The $600 threshold applies to your total net winnings, which are calculated as total winnings minus losses and fees.
Please consult with a tax professional to understand how this impacts your personal tax situation.
If you havenāt 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 [email protected].
If you have not received the W-9 email, check your spam/junk folder and ensure your email address on file with Dabble US is correct. Dabble US uses a secure third-party service, Track1099, to distribute and collect tax forms. Contact our Customer Service team if you still cannot locate the email.
Remember, staying on top of your tax responsibilities is as important as playing the game.
FAQs
Do I need to complete a W-9 form for winnings under $600? No. The W-9 form is only required if your total NET winnings reach or exceed $600 in a calendar year.
Will I receive a Form 1099-MISC if my winnings are under $600? No. Form 1099-MISC is only issued for net winnings of $600 or more.
How can I track my NET winnings?
Open the Dabble app.
Go to Settings (cog icon).
Tap Responsible Gaming.
Tap Account Activity and select a time frame (e.g., Last 12 Months).
Your net winnings will be displayed, helping you determine if you have reached the $600 threshold.