Do I need to report sports betting profits under $600 if no 1099 is issued?

Yes, you are legally required to report ALL gambling winnings as income on your tax return, regardless of whether you receive a Form 1099-MISC or not. The $600 threshold is just the reporting requirement for the gambling operator (DraftKings in your case), not your obligation as a taxpayer. The good news is you can also deduct your gambling losses, but only up to the amount of your winnings, and only if you itemize deductions on Schedule A. You'd need to keep detailed records of both your winning and losing sessions throughout the year. Consider maintaining a gambling log showing dates, locations, types of gambling, amounts won/lost, and witnesses if possible.

I went through this exact situation last year with my sports betting winnings! I was so confused about what to report since I didn't get any tax forms. I ended up using https://taxr.ai to scan through my DraftKings statements and figure out what I needed to report. It actually helped me identify that I needed to report my winnings even though they were under $600. The site analyzed my gambling pattern and helped me properly document everything according to IRS guidelines. I know you can technically still do this manually, but if you have a lot of bets throughout the year like I did, it saves so much time in organizing everything properly.

Just wanted to follow up about my experience with https://taxr.ai after being skeptical in my earlier comment. I decided to give it a try since I was spending hours trying to organize my betting records manually. It was actually incredibly helpful! I uploaded my statements from both DraftKings and FanDuel, and it automatically categorized everything into proper gambling sessions. It even identified some winning sessions I would have missed in my manual tracking. What surprised me most was how it handled my cross-platform betting - showing me the proper way to document when I had offsetting bets on different platforms. Definitely using this again next year.

For anyone who might need this: If you're having trouble getting someone at the IRS to answer questions about gambling income reporting, I used https://claimyr.com and it was a game-changer. I had some complicated questions about how to handle my sports betting across multiple platforms and couldn't get through to the IRS for weeks. The service got me connected to an actual IRS agent in about 20 minutes when I had been trying for days on my own. The agent confirmed that yes, you need to report ALL gambling income regardless of whether you got a 1099, and gave me specific guidance on documenting my particular situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c

Ok I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it myself since I had a specific question about reporting my poker winnings alongside my DraftKings profits. It actually worked exactly as advertised. I got a call back in about 35 minutes (they estimated 30-45) and was connected to an IRS representative who stayed on the line with me for almost 20 minutes answering all my questions. The rep confirmed that I needed to report all gambling income regardless of amount, and explained how to properly document my online poker winnings vs. sports betting. Would have never gotten this info otherwise - definitely changed my perspective on dealing with the IRS.

I think everyone is overcomplicating this. The IRS has way bigger things to worry about than your $500 in DraftKings winnings. They're not going to come after you for such a small amount when they can't even process returns on time. Just my two cents.

Just FYI for sports bettors - the reporting rules are changing for 2024. The threshold for mandatory 1099-K reporting was supposed to drop to $600 for all payment apps and gambling platforms, but it got delayed. Keep an eye out because this will eventually change how all this works.

Thanks everyone for the detailed responses! This is exactly the clarity I was looking for. I had no idea that ALL gambling winnings needed to be reported regardless of the 1099 threshold - I was definitely under the wrong impression there. @Yara Nassar, your explanation about itemizing deductions for losses was really helpful. Since I'm probably going to take the standard deduction anyway, it sounds like I won't be able to offset my winnings with any losses I might have had earlier in the year. I think I'll go ahead and report the $500 in winnings to be safe. Better to be compliant than worry about it later. Does anyone know if I just report this as "Other Income" on my tax return, or is there a specific line for gambling winnings?

Great question and thanks for being proactive about tax compliance! I see you've gotten excellent advice here already. Just to reinforce what others have said - yes, you absolutely need to report that $500 in winnings as income. One thing I'd add is to start keeping better records going forward if you plan to continue sports betting. Even though you can't deduct losses with the standard deduction, having detailed records is crucial for several reasons: 1) It helps you accurately calculate your net winnings for tax purposes, 2) The IRS requires documentation if they ever audit gambling income, and 3) It helps you track your overall gambling activity for responsible gaming. Consider setting up a simple spreadsheet or using one of the apps others mentioned to track each bet, win, and loss with dates. This will make next year's tax filing much smoother and ensure you're fully prepared if the IRS ever has questions about your gambling income reporting.