Will my Fanduel winnings be taxed if I basically broke even for the year?

The way gambling taxation works is that Fanduel will issue you a Form W-2G if any single win meets the reporting threshold (generally $600 or more where the payout is at least 300 times the wager). They'll report the full amount of those qualifying winnings to the IRS. However, you can also deduct your losses up to the amount of your winnings when you file your taxes, but there's a catch - you need to itemize deductions on Schedule A rather than taking the standard deduction. This means gambling losses are only beneficial tax-wise if your total itemized deductions exceed your standard deduction. Also, you should keep detailed records of both wins and losses (screenshots, account statements, etc.) in case of an audit.

I was in almost the exact same situation last year with about $15k in winnings but only being up around $300 total. I ended up spending hours trying to figure out my taxes until I found taxr.ai (https://taxr.ai) which really helped me figure out my gambling winnings situation. They have this cool feature where you can upload your Fanduel yearly statement and it sorts through all your sessions to maximize your tax position. The site explained that for gambling winnings, you need to report all your winnings as income on your 1040, but then you can deduct losses (up to the amount of winnings) on Schedule A if you itemize. They helped me determine whether itemizing made sense in my situation, which saved me from paying taxes on the full $15k when I barely profited.

Just wanted to follow up about taxr.ai since I was skeptical at first. I ended up trying it after getting my Fanduel and DraftKings statements. Really surprised how well it worked - uploaded my statements and it analyzed everything automatically, showing me exactly what to report where on my tax forms. The best part was it ran the numbers both ways (standard vs. itemized deduction) and showed me which would save more money. In my case, I was better off keeping the standard deduction, but at least I knew exactly what to report for the winnings. Saved me from panicking about a huge tax bill on money I never actually "won." Definitely using it again this year.

I had a similar issue with Fanduel last year. After calling the IRS for THREE DAYS straight and never getting through, I found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed what others are saying - you have to report all winnings as income but can deduct losses up to the amount of winnings if you itemize. They also told me exactly what documentation I needed to keep in case of an audit (which was super helpful because Fanduel's reporting can be confusing). Saved me hours of frustration trying to get through their phone system.

Well I need to eat my words about Claimyr. After waiting on hold with the IRS for 2+ hours and getting disconnected TWICE, I gave in and tried it. Within 25 minutes I was actually talking to an IRS agent who explained exactly how to handle my Fanduel winnings. She confirmed I need to report the full winnings amount but can offset with losses if I keep proper documentation. She even emailed me the specific forms I need. I've been trying to get this info for weeks! Not cheap but worth every penny not to waste another day on hold. Wish the IRS would just fix their phone system but at least there's a solution in the meantime.

Friendly reminder to everyone - make sure you're keeping really good records of ALL your gambling activity. The IRS expects you to have documentation of every session - dates, locations, amounts won/lost, etc. Screenshots of your account history can help. I got audited two years ago for my DraftKings winnings and it was a nightmare because I didn't have good records. They disallowed all my loss deductions and I had to pay taxes on the full amount plus penalties. Don't make my mistake!!

Something nobody's mentioned - there might be state tax implications too, not just federal! Some states treat gambling income differently or have different rules about deducting losses. I'm in New York and they're super strict about gambling income. Even if you take the standard deduction on your federal return, NY makes you add back gambling losses you deducted on your federal Schedule A. It's a mess. Check your state rules before filing!

Great question and really important to understand this early! I dealt with this exact situation last year. The key thing to know is that FanDuel will report your winnings to the IRS on Form W-2G for any single bet that wins $600+ and is at least 300x your wager. So if you had several bigger wins throughout the year, you'll likely get multiple W-2G forms even though your net is only $200. Here's what I learned: You MUST report all those W-2G winnings as income on your tax return - there's no way around it. But you can deduct your losses up to the amount of your winnings IF you itemize deductions on Schedule A. The catch is you need to keep detailed records of every session. For your situation with only being up $200 net, definitely compare itemizing vs. standard deduction. With the current standard deduction being pretty high ($13,850 for single filers in 2023), itemizing might not save you money unless you have other significant deductions like mortgage interest or large charitable donations. My advice: Download your annual statement from FanDuel now, take screenshots of your account history, and maybe consult a tax professional if the numbers are substantial. Better to be prepared than surprised come tax time!

This is such a frustrating aspect of gambling taxation! I went through something similar last year with about $8,000 in winnings but only netting around $150 after losses. One thing that helped me was creating a simple spreadsheet early in the year to track every session - date, amount wagered, amount won/lost, and running total. It made tax time much less stressful because I had everything documented. Also, don't forget that even if you don't get W-2G forms for smaller wins, you're still technically supposed to report ALL gambling income. The platforms track everything digitally now, so it's better to be thorough. For your $200 net situation, definitely run the numbers both ways (standard vs itemized deduction) before deciding. Many people find that with the higher standard deduction amounts, they're better off just taking the standard deduction and paying tax on the reported winnings, especially if it's a relatively small amount. But if you have other itemizable expenses, it might be worth bundling everything together. Good luck with tax season - at least you're thinking about this ahead of time instead of scrambling in April!

I've been dealing with this exact situation for the past few years and wanted to share some practical advice. You're absolutely right to be concerned about the tax implications! Here's the reality: FanDuel will likely issue W-2G forms for any individual wins of $600+ that are at least 300 times your wager. So even though you're only net positive $200 for the year, you might still receive forms showing thousands in "winnings" that you'll need to report as income. The good news is you can deduct your losses up to the amount of your winnings, but only if you itemize deductions on Schedule A. Given that you're only up $200 net, you'll want to calculate whether itemizing makes sense compared to taking the standard deduction ($13,850 for single filers in 2023). My recommendation: Download your complete transaction history from FanDuel NOW while it's easily accessible. Keep detailed records of every session - dates, amounts wagered, wins, losses. Even take screenshots of your account summary periodically. If you ever get audited, the IRS wants to see contemporaneous records, not something you recreate later. Also consider consulting a tax professional if the amounts are significant relative to your income. The rules around gambling taxation can be tricky, and it's worth getting it right the first time rather than dealing with penalties later. You're smart to think about this now rather than waiting until tax season!

This is exactly why I keep detailed records from day one of any gambling activity! Based on my experience helping friends through similar situations, here's what you need to know: FanDuel will absolutely report your qualifying winnings (typically any single win of $600+ that's 300x your wager) via W-2G forms, regardless of your net position. So yes, you could be looking at tax liability on that $13,500 even though you're only up $200. The silver lining is that you can deduct losses up to your winnings amount, but only if you itemize on Schedule A. Given your small net gain, definitely calculate both scenarios - standard deduction vs. itemizing with gambling loss deduction. Here's my actionable advice: 1. Download your complete FanDuel transaction history immediately and save it in multiple places 2. Take screenshots of your account summary showing total deposits/withdrawals 3. Create a simple spreadsheet tracking your major sessions if you haven't already 4. Calculate your total potential itemized deductions (SALT taxes, charitable donations, etc.) to see if itemizing makes sense If itemizing doesn't beat the standard deduction (~$13,850 for single filers), you'll unfortunately pay tax on the reported winnings. But at least you'll know exactly where you stand before filing! The most important thing is having bulletproof documentation. The IRS loves auditing gambling income, and they expect contemporaneous records, not something recreated later. You're smart to think about this now rather than scrambling in April!