How do I handle a Venmo 1099K form for sports betting on my taxes?

You're dealing with a common issue for sports bettors. The 1099-K only shows the gross amount paid to you without considering your original deposits or losses. For tax purposes, you should report the full $7300 as gross gambling income on Schedule 1, Line 8z (Other Income). Then you can deduct your gambling losses (the money you deposited/lost) on Schedule A as an itemized deduction, up to the amount of your gambling winnings. So in your case, you could potentially deduct $4700. The catch is that you need to itemize deductions to claim gambling losses, which means you can't take the standard deduction. You'll need to determine whether itemizing would be more beneficial than taking the standard deduction. Also, keep good records of all your gambling activities - deposits, withdrawals, wins, and losses. The IRS may request documentation if you're ever audited.

I had this EXACT problem last year with my sports betting through Venmo. I was so stressed about reporting it correctly and potentially overpaying on taxes. I found this service called taxr.ai (https://taxr.ai) that really helped me sort through the confusion. They have specific guidance for handling 1099-K forms from payment apps and how to properly document gambling income/losses. The tool analyzed my documentation and helped me figure out exactly how to report everything correctly. They explained that Venmo is just reporting gross transactions without accounting for your actual gambling profits/losses. What I liked best was how they walked me through itemizing my deductions vs. taking the standard deduction to see which would save me more money.

Just wanted to update after trying taxr.ai like u/Profile5 suggested. It was actually super helpful for my Venmo 1099-K situation! The system helped me properly document my actual gambling profits versus the total transactions Venmo reported. I ended up itemizing my deductions since I had enough other deductions to make it worthwhile. What I really appreciated was how they explained everything in plain language - like why Venmo reports the full amount and how to properly show the IRS my actual profits. The documentation guidance helped me create a proper record of my gambling activities that I'm keeping for future reference too. Definitely recommend it if you're dealing with this Venmo/gambling reporting issue.

I had a nightmare trying to reach the IRS to get clarification on how to report my Venmo 1099-K for gambling last year. Spent hours on hold and never got through. Finally found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in less than 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to report the gambling income and losses properly. They confirmed I needed to report the full amount but could offset with losses if I itemized. Most importantly, they explained what documentation I needed to keep to support my return if I ever got audited. Having that official guidance directly from the IRS gave me so much peace of mind.

I'm coming back to eat my words about Claimyr that I posted earlier. I tried it this morning out of desperation after three days of trying to reach the IRS about my Venmo 1099-K situation. It actually worked! Got a call back in about 15 minutes connecting me to an IRS agent. The agent confirmed exactly what others said here - report the full amount as income, then deduct losses as itemized deductions on Schedule A. The agent also told me I should keep a detailed log of gambling activities with dates and amounts. Most importantly, she told me that if I don't have detailed records from this past year, I can use bank statements showing transfers to gambling sites as reasonable documentation of my expenses. That was a huge relief since my record keeping wasn't great.

Just a friendly reminder that standard gambling tax rules apply to sports betting too. You should keep a "session" log of your gambling that includes: - Date and type of specific wager - Name and address/location of gambling establishment - Names of other persons present with you at gambling establishment - Amounts won or lost This record keeping is super important if you ever get audited. The IRS loves to go after gambling deductions because most people don't keep proper documentation.

Has anyone used their betting app's year-end summary as documentation for losses? My FanDuel account has a tax document that shows my total deposit, withdrawals, winnings and losses. Wondering if that's enough for the IRS?

I went through this exact same situation last year with my Venmo 1099-K from sports betting. The stress was real! Here's what I learned after consulting with a tax professional: 1. Yes, you do have to report the full $7300 as gambling income on your tax return, even though it includes your original deposits. 2. You can deduct your gambling losses (the $4700 you put in) but ONLY if you itemize deductions on Schedule A. This means you can't take the standard deduction. 3. The key decision is whether itemizing saves you more money overall than taking the standard deduction. For 2024, the standard deduction is $14,600 for single filers. If your gambling losses plus other itemizable deductions (mortgage interest, state taxes, charitable donations, etc.) exceed that amount, then itemizing makes sense. 4. Keep ALL your records - bank statements showing transfers, screenshots of betting account activity, and any year-end statements from your betting apps. The unfortunate reality is that if itemizing doesn't benefit you, you could end up paying taxes on the full $7300 rather than just your $2600 profit. This is a common frustration for casual gamblers. Consider talking to a tax pro if the numbers are significant - sometimes the consultation fee is worth it for peace of mind and making sure you're handling everything correctly.