Reporting Income for tax purposes

[mbyron]

Originally Posted by aschramm

Wow,
I come to ask a simple question, since I've never had to do this before (1st year ump), and I get questioned about my ethics and integrity....thanks guys

Since your question boils down to, "can I cheat on my taxes and get away with it," you really shouldn't be surprised that people question your integrity.

[bob jenkins]

Originally Posted by mbyron

Since your question boils down to, "can I cheat on my taxes and get away with it," you really shouldn't be surprised that people question your integrity.

Given his apparent age, I don't think the question was "can I cheat" as much as it was "how do I do this?". at least, I'm willing to give him the benefit of the doubt, for now.

[mbyron]

Originally Posted by bob jenkins

Given his apparent age, I don't think the question was "can I cheat" as much as it was "how do I do this?". at least, I'm willing to give him the benefit of the doubt, for now.

Fair enough. The question about whether income can be "traced back by my SS number" sounds like he already knows it's reportable, which in turn suggests that the real question is "do you guys get away with this?"

[UmpJM]

Originally Posted by aschramm

In almost all of my games and tournaments that I worked this summer, I was paid either by cash or personal check for these. I can only think of 1-2 times that I was paid by check, where the payer had my social security information. Does all of this need to be reported on my taxes? Or just the times that I was paid that can be traced back by my SS number?

Edit: Or is this just a better question to ask my tax man? Also, I get claimed under my parents.

aschramm,

Whether you are paid in cash or by check for your umpiring services has no bearing on whether you are legally required to report that income. Since you state you are claimed as a dependent by your parents, I infer that you are relatively young and may be a student rather than someone who is "full-time" employed. As such, you may have limited income.

If your aggregate income is such that you are not required to file an income tax return under IRS regulations, you need not report ANY of the income you received. If, on the other hand, you are required to file a return, you must report ALL of the income, regardless of whether you were paid in cash, check, bearer bond, or gold bullion. Of course, you would also be able to deduct reasonable and actual expenses from that income as well.

Regardless, you are probably better off getting tax advice from a qualified tax professional rather than a bunch of people who post on an internet umpire forum.

JM

[ncump7]

"Regardless, you are probably better off getting tax advice from a qualified tax professional rather than a bunch of people who post on an internet umpire forum."

That is good advice..

[Forest Ump]

aschramm,

You picked the wrong forum. Try this one http://www.taxforum.us/

Now if you want to discuss that call you made......

[btdt]

four or five years ago my 1099 wasn't in the box I give to the guy who figures my taxes every year. A couple years later I got a letter from uncle SAM wanting 2K including penalties and interest.

I make sure my umpiring 1099 is in the box now.

[bluezebra]

Back in the late 70s, a friend of mine was audited. The IRS agent looked at his name on his tax forms, then at him, and repeated this a few times. He then said, "Bill *****. Didn't I see you on TV officiating Pac 10 basketball"? Bill, smiling and replied, "Yes". "Then how come you haven't listed any officiating pay here"?

Bill had to contact every high school and college where officited in the previous three years and get his fee records. He not only had to pay taxes on those funds, but also interest, and a stiff fine.

I kept my mileage, association fees, rule books, uniforms, etc. It usually brought my totals down to zero. I was audited in 1981, and was complimented on my keeping, and reporting the income, on my officiating.

Bob

[Steve M]

Originally Posted by bluezebra

I kept my mileage, association fees, rule books, uniforms, etc. It usually brought my totals down to zero. I was audited in 1981, and was complimented on my keeping, and reporting the income, on my officiating.

Bob

Bob,
That's a good point - keep accurate records and take all legitimate expenses and the actual taxable income is pretty small, in not zero. I've found it to be the same.

[lawump]

I was told by professional colleagues (attorneys...not umpires) once, "we don't bring criminal charges against people who incorrectly claim deductions. We go after people who fail to report income."

Take what you want from that.

[yawetag]

I suggest starting here: http://www.irs.gov/individuals/students/index.html . In fact, the page you should read is here: http://www.irs.gov/individuals/artic...=96623,00.html . Among the list of examples that require you to file is, "Were you self-employed with earnings of more than $400.00?" I would think that's the biggest question you need to ask.

Also, if you had another job that you have had taxes already taken out from, you would definitely need to file. Not to worry, though, most students don't have a tax liability.

As the others said, it is the law to file your taxes, but that's only if you're required to. If you have any questions, contact a tax professional.

Originally Posted by aschramm

In almost all of my games and tournaments that I worked this summer, I was paid either by cash or personal check for these. I can only think of 1-2 times that I was paid by check, where the payer had my social security information. Does all of this need to be reported on my taxes? Or just the times that I was paid that can be traced back by my SS number?

Edit: Or is this just a better question to ask my tax man? Also, I get claimed under my parents.

[ozzy6900]

Originally Posted by aschramm

In almost all of my games and tournaments that I worked this summer, I was paid either by cash or personal check for these. I can only think of 1-2 times that I was paid by check, where the payer had my social security information. Does all of this need to be reported on my taxes? Or just the times that I was paid that can be traced back by my SS number?

Edit: Or is this just a better question to ask my tax man? Also, I get claimed under my parents.

Yes, you should talk to your tax person because if you are still being claimed as a dependent, your earnings may affect the returns (or payments) of you or your parents. Generally, if you earn $400 or more in one specific, full or part time job, you should declare the earnings. For that, most of us (in umpiring) are left to our honor to do.

My biggest problem with your post is giving your SS# to anyone that is not your full time employer or regular part time employer. You see, umpiring for the "Joe Blow Memorial League" for 5 games @$40 per game is not considered a regular part time employment. This is where you have to be careful with your SS#. In our association, we do not give our SS# to any HS or league (we have a by-law to cover that) as we are not permanent or semi-permanent employees to anyone. We are independent contractors and we take care of our own taxes (hopefully). Also remember that throwing your SS# around can lead to serious problems as Cities and private leagues have very poor security with their records. Basically, the way that we operate here is simple. If you want my SS#, I do not work for you - it's that simple!

And before you others go jumping up and down about this, let me inform you that the main assignor of our association is a retired IRS official! You know the guy that you have to sit with when you get called in for an IRS audit! I think that he knows the in's and out's of the system a lot better than most of you out there!

Also, go to the links provided by Forrest-Ump and Yawetag. They provide good information B U T unless you are very familiar with the rules of the IRS, I suggest that you speak to a tax person!

Good Luck