Quote:
Originally posted by zebracz
As you surely know, we as indep contrs need to file a 1099. Schools (education) now days are becoming more stringent, precise rather, on where their $$ goes. By law, we should have a 1099 filed w/ each school we officiate at, every year. The school district reports this contractor rate on their taxes; the IRS will have the record, in case one day they decide to come after us (and our advocation). If they did audit us, and we'd not claimed a certain amnt of income over a good ten yrs, it could mean trouble and fines. Sometimes, an official may owe over $2000 a year; however, as I understand it, if I don't make $600 annually from the same school district, I don't have to claim it. But the school will claim it.
Our association asked us to take forms w/ us to give. If you don't assign to too many schools, you could just have each official fill one out at your assoc meetings and you could mail them to the schools. ***goodluck, hope this helped***
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If you earned $600 from the same source you MAY receive a 1099MISC (I worked for a league last season where I made more than that in a month and didn't receive anything). From our perspective, as officials, that's IRRELEVANT.
You are required to claim every penny you earn as income for the purposes of paying income taxes. Do most officials? In my experience, no, they don't. And those people snicker and guffaw and think they are getting away with something. More power to them -- if and when they get audited they'll see who gets the last laugh.
Do I claim everything? Every penny. I keep spreadsheets for expenses and earnings throughout the season. I also deduct every penny I'm entitled to deduct (uniforms, training, dues, allowable mileage to-and-from events, etc.) and I rarely do more than barely break even every season. Of course I do buy new uniforms for three sports just about every season and am a baseball gear junkie. That reminds me -- I should have a black plate coat arriving any day now....
WE don't file 1099 forms -- those are documents the PAYING entity files and sends -- one copy to the IRS and one copy to you. Also, since it's late February, you should have 1099MISCs in hand if you are going to be receiving them at all.
TurboTax is great software for filing your Schedule C. If you don't know what a Schedule C is, you haven't been properly reporting your income....
As far as the original poster goes, I would consult a CPA or tax attorney.
--Rich