That is correct (for US taxpayers). You take all your gambling winnings, from whatever source derived, and subtract all your gambling costs to get your taxable gambling income (minimum $0/yr, no carry-over of losses).
I don’t know how many of the fees count, but the $85 certainly does.
If you are more than an occasional gambler (eg “professional” poker player) you can do your own accounting, and report your net take. So, if you keep proper records, you should be able to report “on Jan 1, my predictit balance was $5,000. I deposited an additional $5,000 during the year, and withdrew $10,000 during the year, and ended with a balance of $7,500. Therefore, I had $7,500 in gambling winnings this year.”
From the first link I posted: “[Y]ou can’t subtract the cost of gambling from your winnings. For example, if you win $620 from a horse race but it cost you $20 to bet, your taxable winnings are $620, not $600 (after subtracting your $20 wager).” If you think Turbotax is wrong, I strongly encourage you to offer more than your word as a random person on the internet.
It’s nuanced. Apparently you do need to be itemizing deductions:
https://www.irs.gov/taxtopics/tc419
On the plus side, if you keep each individual payout below $600, you can avoid it entirely.
I see that the rules were likely changed with the Trump tax changes in 2016, I apologize for spreading outdated information.
That is correct (for US taxpayers). You take all your gambling winnings, from whatever source derived, and subtract all your gambling costs to get your taxable gambling income (minimum $0/yr, no carry-over of losses). I don’t know how many of the fees count, but the $85 certainly does. If you are more than an occasional gambler (eg “professional” poker player) you can do your own accounting, and report your net take. So, if you keep proper records, you should be able to report “on Jan 1, my predictit balance was $5,000. I deposited an additional $5,000 during the year, and withdrew $10,000 during the year, and ended with a balance of $7,500. Therefore, I had $7,500 in gambling winnings this year.”
From the first link I posted: “[Y]ou can’t subtract the cost of gambling from your winnings. For example, if you win $620 from a horse race but it cost you $20 to bet, your taxable winnings are $620, not $600 (after subtracting your $20 wager).” If you think Turbotax is wrong, I strongly encourage you to offer more than your word as a random person on the internet.
It’s nuanced. Apparently you do need to be itemizing deductions: https://www.irs.gov/taxtopics/tc419 On the plus side, if you keep each individual payout below $600, you can avoid it entirely. I see that the rules were likely changed with the Trump tax changes in 2016, I apologize for spreading outdated information.