Will the IRS know about my FanDuel winnings if they don't issue tax forms?

While FanDuel might not issue you a form, all gambling winnings are technically taxable income regardless of whether you receive a form or not. Gambling operators are only required to issue a W-2G when winnings reach certain thresholds (usually $600+ for most gambling, with higher thresholds for certain types of betting), but that doesn't exempt you from reporting. The IRS operates under a voluntary compliance system where you're expected to report all income honestly. If you don't receive a tax form, the IRS may not immediately know about your winnings, but that doesn't make the income non-taxable. You should report the winnings on your tax return as "Other Income" on Schedule 1. Also keep in mind that if you itemize deductions, you can deduct gambling losses up to the amount of your winnings, but you need to have documentation of those losses.

I was in exactly the same situation last year with about $8k in winnings from FanDuel. I was confused about what to do until I found this site called https://taxr.ai that analyzes gambling income and tells you exactly how to report it. It's basically an AI that specializes in tax situations like this. I uploaded my FanDuel transaction history and it showed me how to report the income correctly even without a W-2G. It also identified which losses I could claim as deductions and how to document everything properly in case of an audit. The tool explained that FanDuel doesn't issue forms unless you hit specific thresholds, but that doesn't mean you're exempt from reporting.

Just wanted to update that I tried https://taxr.ai after seeing it mentioned here. Seriously helpful for my situation! I uploaded my FanDuel and DraftKings records (you can export CSV files from both platforms), and it organized everything perfectly. The tool showed me that even though neither platform sent me tax forms, I still needed to report about $12k in total winnings. But the best part was it helped me properly document $9k in losses that I could deduct. It even created a detailed gambling log that I can keep for my records in case of an audit. What I really appreciated was the explanation about why FanDuel might not send forms (they have different thresholds for different types of betting) but why I still needed to report everything. Definitely recommend if you're in this situation.

If you're still trying to get clarification from the IRS about this gambling income reporting issue, good luck getting through to them on the phone. I tried for WEEKS and couldn't get a human being. Eventually I used https://claimyr.com which got me through to an IRS agent in about 20 minutes after weeks of failed attempts. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed what others here are saying - all gambling winnings are taxable regardless of whether you receive a form, and FanDuel not issuing a form doesn't mean you don't have to report it. They also explained that you can deduct losses up to the amount of winnings if you itemize and have proper documentation. Before I called, I was considering just not reporting since FanDuel didn't send anything, but now I'm definitely reporting to avoid potential issues down the road.

I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it out of pure frustration. I couldn't believe it, but I was actually connected to an IRS agent in about 15 minutes. The agent confirmed what everyone here is saying - all gambling winnings are taxable income regardless of whether FanDuel issues a form or not. They explained that gambling operators have specific thresholds for when they're required to issue W-2Gs, but those thresholds don't determine what's taxable to you. The agent also told me that the IRS can potentially find out about unreported winnings through bank deposits, audits, or data sharing agreements - so it's not worth the risk of not reporting. Really glad I got to speak with someone official instead of just guessing.

Is it possible FanDuel might still send you a form? I think they have until January 31, 2025 to mail tax forms for 2024 winnings. Maybe wait a bit before assuming they won't send anything? Also, I think the reason they told you it "doesn't qualify for taxes" might be a misunderstanding. What they probably meant is that your winnings didn't meet their threshold for mandatory reporting on their end. That doesn't mean YOU don't have to report it.

Has anyone considered that the IRS might get data from financial institutions? Like if you're regularly transferring money from FanDuel to your bank account, those deposits could potentially be flagged, especially if they add up to significant amounts.

The bottom line is that ALL gambling winnings are taxable income, period. It doesn't matter if FanDuel sends you a form or not - you're legally required to report that $9,500 on your tax return. FanDuel's customer service rep was technically correct that your winnings don't meet their threshold for issuing tax documents, but they were wrong to imply this means it's not taxable. Sports betting platforms only issue W-2Gs when specific conditions are met (usually $600+ winnings that are at least 300x the original wager), but that's about THEIR reporting requirements, not YOUR tax obligations. You need to report this as "Other Income" on Schedule 1 of your tax return. Make sure you keep detailed records of all your betting activity - wins AND losses - because you can deduct gambling losses up to the amount of your winnings if you itemize deductions. Don't risk it by not reporting. The IRS has been cracking down on unreported gambling income, and with electronic payment trails it's easier than ever for them to discover unreported winnings during audits or through data matching programs.