So this is what W-2 Employers will withhold from your paychecks this year eventually if they haven’t already done so. In many cases, more will receive extra in their paychecks. While this maybe great for someone who doesn’t play Daily Fantasy Sports, remember the lower amount of withholding doesn’t necessarily mean lower tax liabilities for you. In fact the gap between what is credited as tax payments and what is actually owed could GREATLY increase leaving you with issues next year.
Players Guide to DFS Taxes has a comprehensive Chapter on Tax Rates for DFS related income so you can plan accordingly and not be in for sticker shock. Remember, as I also mentioned in the book, the sites do not withhold tax crediting payments when you actually file your return. It is your responsibility.
And as I always say, get those State payments in before the end of the year. You can still allocate State and Local taxes between your Itemized Individual deductions (subject to $10,000 cap) and that derived from DFS. In years past, I would put all amounts on the Schedule A.