Moving Someplace With More Baseball

[jchamp]

Originally Posted by Tim C

Jeff:

Your post doesn't really make sense.

How could you jump to a conclusion that because something is considered a hobby you wouldn't pay taxes?

I have paid taxes on all my "hobby money" for the last 41 years. I paid taxes on Baseball Umpiring, Basketball Officiating, caddying, and now my new hobby.

I really don't even get your post to be honest.

T

Your point is absolutely true. If there is any documentation regarding the "hobby money", (1099, W2, etc.) and it is not reported, it will start raising flags. If someone gets audited and it is determined that any of the past three years worth of returns had omitted income, then the previous seven years can be investigated. They won't (likely) drill you for missing a couple hundred dollars worth of 1099's. Guys working strictly seasonally, who are almost exclusively paid in cash with no or few records, are often told by their tax pro's to just not worry about it. But when records are made that link your SSN to your work, it's a good idea to just suck it up and report your income. You can do it on Schedule C, and keep track of your expenses so that you can deduct a lot of your business expenses.