Tax Season

[Camron Rust]

Originally Posted by crosscountry55

Yes. But, for purposes of knowing what the amount is for which an individual employer must report your income to the IRS, I think it's $600/yr. Any CPAs out there to confirm?


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Federal, yes, it is $600. But, it isn't an employer. If so, you'd get a W2 and not a 1099. That is the cutoff where they are required to file one, but they may file one for smaller amounts.

[Reffing Rev.]

If you had more than $400 of income before expenses you may be required to pay SECA. That is 400 total, not just from 1 school/payer. You're going to need a schedule C and a schedule SE. If you are one of those who work tons of games, you may even be required to pay quarterly tax estimates.

Be careful with your business expenses for officiating. If audited you will probably lose most of the write-offs without very good substantiation.

[Mark T. DeNucci, Sr.]

Originally Posted by Reffing Rev.

If you had more than $400 of income before expenses you may be required to pay SECA. That is 400 total, not just from 1 school/payer. You're going to need a schedule C and a schedule SE. If you are one of those who work tons of games, you may even be required to pay quarterly tax estimates.

Be careful with your business expenses for officiating. If audited you will probably lose most of the write-offs without very good substantiation.

It is not $400 income before expenses but taxable profit after expenses.

MTD, Sr.

[WhistlesAndStripes]

Originally Posted by Mark T. DeNucci, Sr.

It is not $400 income before expenses but taxable profit after expenses.

MTD, Sr.

Net income.

[Mark T. DeNucci, Sr.]

Originally Posted by Mark T. DeNucci, Sr.

It is not $400 income before expenses but taxable profit after expenses.

MTD, Sr.

Originally Posted by Whistles & Stripes

Net income.

If one has a profit of $400 or more on Line 31 of his/her Schedule C for 2015, then that person has to pay SSC taxes. If your figure on Line 31 is a profit it is a taxable profit.

MTD, Sr.

[Reffing Rev.]

1 more caveat

If game fee and mileage are on the same check then according to the irs they are both game fee/income. Mileage must be documented and paid separately from fees/wages/salary. I.e. if game fee is $100 and mileage is 100 miles, $50 (easy to do in Nebraska) and your check is for $150, then as far as the irs is concerned that game fee was $150.

Furthermore you can't claim mileage from "home" commuting to work isn't a tax break, but if you can document and substantiate that you have a designated home "office" for your officiating then you can claim mileage.

There is debate about mileage to camps/clinics, unless such camps are required by your employer or your "business"

In other words just be careful. But don't cheat on your taxes. Our avocation requires us to be credible men/women of integrity.

[Adam]

Originally Posted by Reffing Rev.

Furthermore you can't claim mileage from "home" commuting to work isn't a tax break, but if you can document and substantiate that you have a designated home "office" for your officiating then you can claim mileage.

Not the advice I got from a tax pro. Commuting to work from home is not deductible for W2 employees. No one I know of is W2 for officiating. Independent contractors (what we do) are different, though, and can deduct mileage to and from games.

As always, consult your tax professional.

[scrounge]

Originally Posted by Reffing Rev.

1 more caveat

If game fee and mileage are on the same check then according to the irs they are both game fee/income. Mileage must be documented and paid separately from fees/wages/salary. I.e. if game fee is $100 and mileage is 100 miles, $50 (easy to do in Nebraska) and your check is for $150, then as far as the irs is concerned that game fee was $150.

Furthermore you can't claim mileage from "home" commuting to work isn't a tax break, but if you can document and substantiate that you have a designated home "office" for your officiating then you can claim mileage.

There is debate about mileage to camps/clinics, unless such camps are required by your employer or your "business"

In other words just be careful. But don't cheat on your taxes. Our avocation requires us to be credible men/women of integrity.

Additionally, and probably of much more relevance to most officials, mileage from your regular work location to a temporary work location (which almost everywhere we officiate would be unless you're going to the same place so often that it's a regular work location) is deductible, regardless of home office status. The home office thing is essentially the same thing, since it would then be your regular location so travel from home directly to the temp work location would then be deductible.

Here's a handy chart from the IRS to help (not applicable if you work from home):



and the original IRS publication:

https://www.irs.gov/publications/p46...link1000136362

[bob jenkins]

Originally Posted by Camron Rust

Federal, yes, it is $600. But, it isn't an employer. If so, you'd get a W2 and not a 1099. That is the cutoff where they are required to file one, but they may file one for smaller amounts.

I have heard or read (but do not know for sure) that some entities are required to report all payments to the IRS, but they only are required to send a 1099 to the taxpayer if >$600. It doesn't matter to me what they do -- I know what I do.

[Camron Rust]

Originally Posted by bob jenkins

I have heard or read (but do not know for sure) that some entities are required to report all payments to the IRS, but they only are required to send a 1099 to the taxpayer if >$600. It doesn't matter to me what they do -- I know what I do.

I file the 1099s with the IRS on behalf of many of my Reftown clients. None of them report anything for those making below $600. There may be some, but I haven't seen any.

There are a few who, in very special cases, have to report all income to a government entity. But it isn't the IRS. The ones I'm aware of are related to garnishments for various reasons and it is usually a state level entity.

There are some individuals who are subject to backup withholding. That may mean that person has to get a 1099 no matter how much they make. Maybe that is related to prior tax payment problems. Not sure...I don't have anyone in the ones I file subject to that.

[scrounge]

Originally Posted by Camron Rust

I file the 1099s with the IRS on behalf of many of my Reftown clients. None of them report anything for those making below $600. There may be some, but I haven't seen any.

There are a few who, in very special cases, have to report all income to a government entity. But it isn't the IRS. The ones I'm aware of are related to garnishments for various reasons and it is usually a state level entity.

There are some individuals who are subject to backup withholding. That may mean that person has to get a 1099 no matter how much they make. Maybe that is related to prior tax payment problems. Not sure...I don't have anyone in the ones I file subject to that.

The IRS, in recent years, has leaned on and 'encouraged' entities with high independent contractor expenses to issue more 1099s. But indeed, the legal requirement is only if any single contractor/vendor gets $600 in total. I think the trend of more 1099's will only grow.

Here, there's one school district that issues 1099s to everyone. I got one 2 years for 1 game. $40.