I deposited 4000 from my bank into Caesars Sportsbook. Pulled out 3500 to paypal which apparently is triggering a 1099K form. Will this show up to the government as me making 3500??? How do I clear this up to show that I shouldn’t pay any taxes on the 3500? Thank you so much for any advice

likehelpful
Posting as :
works at
You are currently posting as works at

https://www.irs.gov/businesses/what-to-do-with-form-1099-k#shouldnt

like

The issuer isn’t going to correct anything. Just back it out as noted by the IRS

There’s a new line on schedule 1 of the 1040 that has a place to enter incorrect or personal use amounts that you get a 1099-K for. I would enter it there and move on.

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