Taxing Your FanDuel Winnings Is More Than You Think

Are FanDuel Winnings Taxed?

FanDuel has millions of paying customers and some of the best fantasy sports tournaments for one day. The FD shells out huge amounts for the current year!

There is ample availability of giant fields for GPP and crazy prize pools for their gamblers.

Are FanDuel winnings taxed? Yes, if you have net profits of $600 or more on FanDuel over the course of the year. Users who received $600+ during the preceding fiscal year should expect to receive a 1099 Tax Form. This 1099 Tax Form will then be sent to the IRS.

Your account and finance maintenance are issues that are often forgotten. To help you out, you will learn about all that, and we’re going to concentrate on FanDuel taxes.

Setting Up A FanDuel Account

First, you need to know if you are eligible to sign up for FanDuel. After knowing if you’re eligible, I’ll start talking about the different banking options available to you. And, of course, the FanDuel tax question.

If you’re over 21 years old, you are eligible to sign up for a FanDuel account. The next good news is that there are a decent handful of states where FanDuel is 100% legally active. These states are:

  1. New Jersey
  2. Pennsylvania
  3. Indiana
  4. West Virginia
  5. Colorado’s state borders

Winnings Are Reported To The IRS

If a wager pays out net winnings of $600.00 or more at odds of 300 to 1 or higher:

  1. FanDuel Sportsbook will report these winnings on an IRS Form W-2G to the subscriber on or before the applicable statutory due date. It will include a separate W-2G form completed for each wager that meets the thresholds above.

  2. FanDuel Sportsbook is required to withhold a specified percentage of net winnings for certain other states. They must also remit it on the subscriber’s behalf to the applicable state taxing authority.

Furthermore, if a wager pays out net winnings of more than $5,000.00 with odds of 300 to 1 or higher:

  1. FanDuel Sportsbook is required to withhold a specified percentage of net winnings for certain other states. They must also remit it on the subscriber’s behalf to the applicable state taxing authority.

  2. FanDuel Sportsbook is required to withhold 24% of the net winnings and send it on the subscriber’s behalf to the IRS.

Estimate Fanduel Winnings Yourself

If you are unsure how much you earn, start in the FanDuel Lobby and select the ‘History’ tab. You can download your history as a CSV file there.

The file is a spreadsheet that shows your winnings and entry fees for each contest. You should simply subtract your total entry fees from your total winnings for the current year.

Fanduel Taxes Withholdings Of Account At The Site

FanDuel’s taxes are sometimes deducted from your record. A certain amount is withheld

if you make a bet that results in $5,000 or more winnings. The winnings should be at least 300 times the wager.

From state to state, this can change. But in New Jersey, the State of New Jersey Division of Taxes collects 3 percent of your overall winnings. Then it goes to the IRS for 24%.

Tax forms

FanDuel will send you Tax Forms, under limited situations, once again. FanDuel will give you a Form W2-G by 31 January if you follow all of the conditions.

Another Copy Of W2-G

If at some point you or your accountant requires another copy of your FanDuel tax Form W2-G, you can fast and conveniently get one.

To use it, go to the FanDuel desktop platform. Note that you will not be able to use this service on your mobile website or mobile app.

W2-g Is Blank

Is it blank on your Form W2-G? That means you have not fulfilled the requirements for sending one of these forms to you for FanDuel taxes.

So, in short, they didn’t count for any of the wagers. This does not actually mean that you are permitted not to pay for those taxes on your winnings at FanDuel. For more information, consult your accountant.

Claiming Gambling Losses On Your Taxes

Gambling expenses are tax-deductible. However, only to the point of your winnings, causing you to declare in the taxes all the income you receive as taxable revenue.

Only when you itemize your deductions, the deduction will be available. If you take the standard deduction, your gaming debts will not cause you to lower your tax.

Keeping Track Of Your Winnings And Losses

As a condition to deducting losses from your winnings, the IRS needs you to record your winnings and losses. Record involved are:

  • Lottery
  • Raffles Raffles
  • Casino gaming
  • Games of Poker
  • And sports betting
  • Dog and horse races

Your documents must contain:

  • The date and type of gambling that you partake in
  • The citizens with whom you have gambled
  • The sum that you win and lose
  • The address and name of the venue where you are gambling

Other records to prove your losses may include:

  • Form W-2g
  • Wagering Tickets
  • Receipts From The Gambling Facility
  • Canceled Checks Or Credit Records
  • Form 5754

Limitations On Loss Deductions

You will never surpass the winnings you record as profits by the number of gaming expenses you can subtract.

For instance, your deduction is limited to $5,000 if you have $5,000 in winnings but $8,000 in losses.

Writing off and rolling to the next year will always be impossible for the remaining $3,000.

Reporting Gambling Losses

You must list the income tax deductions on Schedule A to record your gambling losses.

If gambling losses and all other itemized costs are higher than the normal deduction under your reporting status, you should itemize deductions. If you state the standard deduction:

  1. You are still required to report all the winnings you earn during the year and pay tax on them.
  2. You won’t be in a position to subtract all of the losses.


Any size of fantasy sports winnings is considered taxable income. If you have a net profit of $600 or more for the year, they must issue a 1099-MISC tax form.

This tax form will be given to both you and the IRS for taxation. Net profit is not based on your withdrawals. It is calculated as prizes won + entry fees + bonuses.

Recent Posts