I’m probably too late here but if anyone’s wondering, PI will send you a 1099-MISC with $8.57 of income, and that’s what you have to pay taxes on. (well, they only send the form if you make over $600, but that doesn’t change your tax liability).
The $85 you deposit definitely does not count as income, regardless of whether you itemize deductions. Regarding the discussion below, the IRS does not treat PI winnings as gambling income, but rather as 1099-MISC (other) income.
I’m probably too late here but if anyone’s wondering, PI will send you a 1099-MISC with $8.57 of income, and that’s what you have to pay taxes on. (well, they only send the form if you make over $600, but that doesn’t change your tax liability).
The $85 you deposit definitely does not count as income, regardless of whether you itemize deductions. Regarding the discussion below, the IRS does not treat PI winnings as gambling income, but rather as 1099-MISC (other) income.
(source: have paid taxes on PredictIt winnings)