Will I receive a 1099‑K from a DFS site?

Daily fantasy sites typically issue Form 1099‑MISC when your net winnings exceed $600, not 1099‑K. Form 1099‑K comes from third‑party payment processors like PayPal when you receive over 200 payments totaling more than $20,000 in a year:contentReference[oaicite:0]{index=0}.

What are the 2025 thresholds for Forms 1099‑K and 1099‑MISC?

The One Big Beautiful Bill Act restored the 1099‑K threshold to $20,000 and 200 transactions from 2025 onward:contentReference[oaicite:1]{index=1}. DFS sites still send 1099‑MISC if your net profit exceeds $600:contentReference[oaicite:2]{index=2}; the threshold rises to $2,000 starting in 2026:contentReference[oaicite:3]{index=3}.

How do DFS sites calculate net profit for tax forms?

Most DFS operators determine net profit as prize winnings minus entry fees plus bonuses or loyalty points:contentReference[oaicite:4]{index=4}. FanDuel’s formula uses winnings – entry fees + bonuses + points:contentReference[oaicite:5]{index=5}.

Do I have to report DFS winnings if I don’t receive a form?

Yes. All income is taxable regardless of whether you receive a tax form:contentReference[oaicite:6]{index=6}. Even if your winnings don’t meet the thresholds, you must report profits on your return.

When will the 1099‑MISC threshold change?

Under the OBBBA, the 1099‑MISC and 1099‑NEC thresholds rise from $600 to $2,000 for payments made after December 31 2025:contentReference[oaicite:7]{index=7}, adjusted for inflation in later years.

DFS Taxes 2025 – 1099‑K vs 1099‑MISC

Oct 2, 2025

DFS Taxes in 2025: Do You Get a 1099-K or 1099-MISC? What Changed & What Didn’t

Daily Fantasy Sports (DFS) players are often caught off guard during tax season. In 2025, the IRS has reset reporting thresholds that impact how winnings are reported. Here’s what DFS players using platforms like EPICK Fantasy need to know.

What Changed With IRS 1099-K Rules in 2025

Old Rule (ARPA 2021): Planned $600 reporting threshold (delayed multiple times).
New Rule (2025 OBBBA): Restored to $20,000 in gross payments AND 200+ transactions.
What it means: Most casual DFS players will not see a 1099-K in 2025.

1099-MISC for DFS Players

DFS platforms issue Form 1099-MISC if you net $600+ in winnings.
This applies even if you don’t hit the 1099-K threshold.
Starting in 2026, the threshold will increase to $2,000, indexed for inflation.

Record-Keeping Tips

Track all entries, deposits, and withdrawals.
Keep a spreadsheet of contest results.
Save transaction history from your DFS app.
Even without a form, all winnings are taxable income.

Common Myths

Myth: “If I don’t get a 1099, I don’t owe taxes.”
- Fact: All DFS income is taxable, reported on Schedule 1 or Schedule C.
Myth: “The IRS won’t notice small winnings.”
- Fact: Payment processors and platforms share data; underreporting risks audits and penalties.

FAQ

Do DFS players get a 1099-K in 2025?
Only if you exceed $20,000 AND 200 transactions.

Do DFS players still get a 1099-MISC?
Yes, at $600 in net winnings (rising to $2,000 in 2026).

What changed for 2025?
The $600 threshold repeal means fewer 1099-Ks, but 1099-MISC remains common.

Do I report winnings without a form?
Yes—all DFS winnings are taxable income.

Conclusion

DFS players must understand the difference between 1099-K and 1099-MISC. In 2025, most will see a 1099-MISC at $600, while only high-volume players cross the 1099-K threshold. Regardless of forms, all winnings are taxable.

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