Reporting Income for tax purposes
 

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.

It all gets reported. I'd suggest using schedule C, but depending on what other income and expenses you have it might not matter.

What he said.

ALL of it needs to be reported.

Consider this.
IF I were a manager/coach/player and I questioned your integrity on the field - you'd rightly be offended and dump me. Why doesn't that same integrity - that we all guard so strongly on the field - carry over to your personal life? Of course you need to report it - and if you choose not to, remember that you have too little integrity to do what's right the next time some manager/coach/player questions your integrity in a game.

Love the analogy Steve lol

-Josh

Render unto Caesar what is Caesars.........

griff

Do you cheat on the field, too?

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:rolleyes:

You should be thankful. Maybe you don't report this income and nobody notices. Maybe then you keep doing the same thing every year. Maybe a few years down the line when you're umpiring more games and making even more money from them, and you are caught not reporting this income your mistake will be very costly. Learning this now could save you a lot of trouble in the long run.

What some of the posters wrote might seem harsh, but ethics and integrity are the most important things you must have as an official. These guys feel strongly about this (so do I), and rightly so.

You need to report all income to the IRS. That is the simple answer. Don't worry about the razing everyone is giving you. Stick with us and I promise you'll get tons of great information from this group!

-Josh

If you don't get a 1099, the gummint is never going to know about the income. Whether you report it or not is your business. If you don't report it, it doesn't make you a bad umpire, it makes you a tax cheat. There are a lot of good umpires out there who are also tax cheats.

OK, I've got another question or two. As a 1st year guy - and I suspected you were relatively "young" in this umpiring world since you can still be claimed by your parents as a tex dependant - how many lumps have you taken on the field this year? If your first year was like mine, that's a big number. Here's hoping you learned from those and don't repeat wrongs. How gentle were those who watched and evaluated? How gentle were those you asked questions of?
AND there are way too many folks who officiate this game and/or others who choose not to report income. They don't care. Don't you be like them.

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

aschramm:

Ethics and integrity are two of the cornerstones of officiating, so stop rolling your eyes. Since you are claimed by your parents, I am assuming that you are either a high school or college student. Therefore, I would strongly advise you that you and your parents should sit down with a tax accountant as to the best way to handle your game fees. But remember, I am willing to bet dollars to donuts that you are still an independent contractor and a Schedule C will figure in your tax calculations.

MTD, Sr.

"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..

aschramm,

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

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

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.

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

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. :rolleyes:

Steve IMO, a VERY BAD analogy

Suppose someone who is a very good umpire say a major league umpire cheats on his wife does that mean that this umpire has no integrity when calling a baseball game?

Bill Clinton cheated on his wife. Did that make him a bad President? I realize that is up to debate but the last time this countries economy was in decent shape was when he was President.

Just because someone fails to declare certain income on his/her taxes does NOT mean they have NO integrity on the field.

IMO, that is simply an absurd correlation.

Pete Booth

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.

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.

Pete,
If I can't trust someone in little things - and officiating income is pretty much a little thing when compared to the regular income most have - how can I possibly trust them with something important. We're talking about judgement and decisions, whether it's taxes, umpiring, or whatever. Integrity is integrity. And a lack of integrity makes one untrustworthy - period.

You asked "Suppose someone who is a very good umpire say a major league umpire cheats on his wife does that mean that this umpire has no integrity when calling a baseball game?" I wouldn't trust him - and would have good reason to question his calls.
"Bill Clinton cheated on his wife. Did that make him a bad President?" Like you, I'll hold off on his presidency effectiveness, but he was certainly a president not worthy of trust then or now.

I believe it's an accurate analogy.

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?"

The reason I mentioned this one, is because I have heard people say that if you've earned under $500 from a particular school or source, that you do not have to worry about filing in regards to that (or heard comments similar to that). And since I only received 1 check that would have this info, it's definitely under the $500 amount.

To clarify again, in no way am I looking to cheat on taxes. I'm just curious as to what gets reported, etc.

If you make less than $600 from a single source (a school, for example), that source is not required to provide you with a 1099. The income is still reportable/taxable, however, even though you won't receive a 1099 for it. Other aggregate thresholds are applicable for whether your income is taxable, and that question belongs to a tax professional.

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

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.

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.

I've been told something similar to that, and one of those who told me that wis a former auditor. They're far less concerned with those who "make a mistake" than with those who don't report.

I know nothing of the tax info. But when I was 18 I knew nothing about taxes let alone I could report my umpire stuff. Kid... dont let all these guys get you down. I understand your question and I know you are just lost. So was I. These guys that question you are just tool bags!