Fantasy taxes · November 2026
Underdog Fantasy Taxes 2026: 1099-MISC & How to Report
Quick answer: yes. Underdog winnings are taxable from the first dollar. A 1099-MISC is generally issued once your net winnings for the year reach $2,000, but you must report winnings even without a form.
What to keep for tax season
- Date and entry fee of every lineup
- Payout for each winning entry
- Deposits and withdrawals
- Your 1099-MISC, if you receive one
Compare the 1099 amount with your own records. If it doesn't match, your log helps you explain the difference.
Frequently asked questions
Does Underdog Fantasy send a 1099?
Daily fantasy operators like Underdog generally issue a Form 1099-MISC when your net winnings for the calendar year reach $2,000 or more. Check your Underdog account and email in early tax season for the form.
Do I owe tax on Underdog winnings under $2,000?
Yes. The $2,000 figure only decides whether a form is issued. All fantasy winnings are taxable income and belong on your federal return even without a 1099.
Can I deduct Underdog losses?
Only if you itemize deductions. Starting with 2026 tax years, deductible gambling losses are limited to 90% of losses, and never more than your winnings. Keep a record of every entry to support the numbers.
General information, not tax advice. Talk to a tax professional about your situation.