Rich,

It's my understanding that if our pay doesn't reach $600 we need not report this as income on a 1099.


Tim.

The *association* (or paying organization) needs to issue a 1099 only if the paymetns are $600 or more. They can issue one for less.

The *umpire* must (well, is supposed to) declare the income whether or not they receive the 1099.

Tim:

Rich is correct. A 1099 is only generated when one (1) entity pays another entity $600 or more in a given tax year. He is also correct that in the immortal words of Yogi Berra, late of AFLAC commercials, that a gift certificate is the same as "cash which is just as good as money."

MTD, Sr.

Tim,

As Bob said, the assignor or whoever is paying issues the 1099. I filed before receiving a 1099 last year, but it was no big deal because all the income was included on my return, 1099 or no 1099. ALL income is taxable.

--Rich

Thanks, guys. I work enough in several leagues and through my association that I'm always over the $600 and have to fill out a 1099 anyway. But there are a lot of guys I know who think they're clear from reporting this income if it doesn't exceed $600 from any given league. I'll have to "coach" them up a bit.


Tim.

$600 from a single customer is the threshold for reporting on a 1099. $1 is the threshold for reporting on a 1040. All income is reportable; the taxable portion is unique to each taxpayer.

To sum this story up. Today the guys were reinstated .They paid the league back the money the had recieved from the ump association , and I heard they were issued gift certificates from honigs in the exact dollar amount. The league president wants next year to just handle it this way instead of an association. Thanks to all who commented . One point that was brought up that I never thought of was why does little league allow leagues to pay to begin with they should pull their chapter. Peace!!!!!

But they still have to declare the value of the gift certificates as income to Uncle Sam.

MTD, Sr.

So have I .. they wear the XXXL:D

There's nothing illegal about a local LL paying umpires. The book says there's no good reason they should, but it's not a "crime" to do so.

Right. After all, it's "for the kids", right ?

I thought it was the responsibility of the entity who paid the $600.00 to complete the 1099, not the recipient. I receive 1099s from several school systems and one municipality each year, but do not remember ever completing one.

Are you completing, perhaps, a W-9?

It is. Tim was apparently confused.

I thought it was anything over $300 that the recipient had to report, and $600 the minimum for the assignor/association/etc.

All income is taxable for Federal Income taxes.

There is a threshold for self-employment taxes (SS, Medicare), which is $400 net income (at least that's what it was recently).