PrizePicks Taxes 2026: How Pick'em DFS Income Is Reported

PrizePicks, Underdog Fantasy, and other pick’em DFS platforms issue 1099-MISC forms to players whose net winnings reach $600 or more in a calendar year. All pick’em DFS income is taxable regardless of whether you receive a form, and the 2026 OBBBA 90% rule introduces a new cap on loss deductions for recreational players.

Last Updated: March 2026

This is general information, not tax advice. Consult a qualified CPA for your specific situation.

Key Takeaways

• PrizePicks and Underdog Fantasy issue 1099-MISC forms for net winnings of $600 or more — but all income below that threshold is still taxable.
• Pick’em DFS is classified as daily fantasy sports, not sports wagering, which affects how income is reported and which deductions apply.
• The 2026 OBBBA 90% rule caps recreational gambling loss deductions at 90% of winnings, creating potential tax liability on phantom income.
• Platforms do not send loss statements — you are responsible for tracking every entry fee and payout.
• Multi-platform players must aggregate winnings across PrizePicks, Underdog, Pick6, and Sleeper for accurate reporting.

How Does the IRS Treat Pick’em DFS Income?

Pick’em DFS occupies the same regulatory space as traditional daily fantasy sports contests. The IRS has not issued specific guidance distinguishing pick’em formats from salary-cap DFS, so the same reporting framework applies. Most tax professionals report pick’em winnings as “Other Income” on Schedule 1, Line 8z — not as gambling income on Schedule A.

This classification matters because it determines your deduction options. Gambling income on Schedule A allows loss deductions only if you itemize, subject to the OBBBA 90% cap. Other Income on Schedule 1 follows different rules. For a full breakdown of how DFS income is classified federally and by state, see our DFS tax guide.

The distinction between pick’em DFS and sports wagering is legally significant. Pick’em contests are regulated under state DFS statutes, not sports betting laws. Calling pick’em entries “bets” or “wagers” is inaccurate and could create confusion on your tax return. For an explanation of how pick’em contests work mechanically, see our pick’em DFS overview.

What Forms Will Pick’em Platforms Send?

Each platform independently calculates whether your net winnings trigger a 1099-MISC. Net winnings are calculated as total payouts minus total entry fees within the calendar year.

A critical gap: none of these platforms provide an annual loss statement. If you need to document losses for deduction purposes, you must maintain your own records. Download entry confirmations and payout receipts throughout the year. Screenshots of account transaction history are helpful but may not satisfy an audit — structured spreadsheets with dates, entry amounts, and payouts are the standard recommendation from CPAs.

If you play on multiple platforms and net $400 on PrizePicks and $300 on Underdog, neither platform sends a 1099. You still owe taxes on the combined $700.

How Does the OBBBA 90% Rule Affect Pick’em Players?

The 2026 Online Betting and Bingo Benefits Act introduced a 90% cap on recreational gambling loss deductions. For pick’em DFS players who report losses, this creates a potential tax trap.

Example: You win $5,000 and lose $6,000 across a season of pick’em entries. Under pre-OBBBA rules, you could deduct $5,000 in losses against $5,000 in winnings, owing tax on $0. Under the 90% rule, your deduction is capped at $4,500 (90% of $5,000), leaving $500 of taxable phantom income.

This rule applies only to recreational players filing on Schedule A. Professional DFS players filing on Schedule C are exempt from the 90% cap and can deduct all legitimate business expenses. Use our gambling tax calculator to model your specific situation under both filing approaches.

What Records Should Pick’em Players Keep?

The IRS expects taxpayers to maintain contemporaneous records of all DFS activity. For pick’em players, this means tracking:

• Entry fees: Date, platform, amount, and contest type for every entry
• Payouts: Date, platform, and amount for every winning entry
• Deposits and withdrawals: Dates and amounts for all platform transactions
• Platform statements: Download monthly or quarterly transaction history from each platform before year-end

Our Odds Reference dashboard tracks market-level data across prediction platforms — apply the same discipline to your personal DFS records. The players who face problems at tax time are almost always those who reconstruct a year of activity from memory in April.

FAQ

Q: Does PrizePicks send a 1099?

A: Yes. PrizePicks issues a 1099-MISC to any player whose net winnings equal or exceed $600 in a calendar year. If you net less than $600, you will not receive a form — but the income is still taxable and must be reported on your federal return.

Q: Is pick’em DFS income taxed as gambling?

A: Federally, most tax professionals classify pick’em DFS winnings as “Other Income” on Schedule 1, not gambling income on Schedule A. However, some states — including New York and Connecticut — treat all DFS winnings as gambling income at the state level, which affects available deductions.

Q: Do I need to report PrizePicks winnings under $600?

A: Yes. The $600 threshold only determines whether PrizePicks is required to send you a 1099-MISC form. All income is taxable regardless of amount under federal law. If you net $150 across the year on PrizePicks, that $150 is reportable on your return.