This is my first year assigning Rec games. The City just sent our association a 1099. I am at a loss as to what to do next. Do I need to send out 1099s to individual officials? Are there computer programs for this and/or can I get blanks from the IRS? Is there anything else I need to know?

As usual, thanks for any help.

Sounds like you need to know a tax accountant. Good luck.

My guess is if they made over $600 total for the year you need to send them. Of course, if you paid them cash...what cash?

independant contractors
 

As you surely know, we as indep contrs need to file a 1099. Schools (education) now days are becoming more stringent, precise rather, on where their $$ goes. By law, we should have a 1099 filed w/ each school we officiate at, every year. The school district reports this contractor rate on their taxes; the IRS will have the record, in case one day they decide to come after us (and our advocation). If they did audit us, and we'd not claimed a certain amnt of income over a good ten yrs, it could mean trouble and fines. Sometimes, an official may owe over $2000 a year; however, as I understand it, if I don't make $600 annually from the same school district, I don't have to claim it. But the school will claim it.

Our association asked us to take forms w/ us to give. If you don't assign to too many schools, you could just have each official fill one out at your assoc meetings and you could mail them to the schools. ***goodluck, hope this helped***

While the IRS website - http://www.irs.gov - has nearly all the forms you could ever want (okay, a misnomer - who ever wants tax forms?), they do not have a usable version of the 1099MISC, as it must be specially prepared. I do know that I've seen packages of the forms and software at various office supply stores.

As a message board, we've gotten pretty good over the years at answering individual tax questions, but I think this is the first time this has come up from your point of view. I'd definately run all this by your association's accountant, or call another local association and see what they do.

as I understand it, if I don't make $600 annually from the same school district, I don't have to claim it. But the school will claim it

I think this is a misunderstanding. I think if you make any amount, you are to report it. If you make over $600, then you should receive a 1099 from that source.


Of course, if you paid them cash

The City writes the Association a check and our treasurer turns around and writes each referee a check for his or her cut.

While the IRS website - http://www.irs.gov - has nearly all the forms you could ever want (okay, a misnomer - who ever wants tax forms?), they do not have a usable version of the 1099MISC, as it must be specially prepared.

I went there first and they have almost too much information but nothing that addressed my situation.

As a message board, we've gotten pretty good over the years at answering individual tax questions, but I think this is the first time this has come up from your point of view. I'd definately run all this by your association's accountant, or call another local association and see what they do.

Thanks, I've e-mailed my high school association's treasurer to see how he'd handle this.

Re: independant contractors
 

If you earned $600 from the same source you MAY receive a 1099MISC (I worked for a league last season where I made more than that in a month and didn't receive anything). From our perspective, as officials, that's IRRELEVANT.

You are required to claim every penny you earn as income for the purposes of paying income taxes. Do most officials? In my experience, no, they don't. And those people snicker and guffaw and think they are getting away with something. More power to them -- if and when they get audited they'll see who gets the last laugh.

Do I claim everything? Every penny. I keep spreadsheets for expenses and earnings throughout the season. I also deduct every penny I'm entitled to deduct (uniforms, training, dues, allowable mileage to-and-from events, etc.) and I rarely do more than barely break even every season. Of course I do buy new uniforms for three sports just about every season and am a baseball gear junkie. That reminds me -- I should have a black plate coat arriving any day now....

WE don't file 1099 forms -- those are documents the PAYING entity files and sends -- one copy to the IRS and one copy to you. Also, since it's late February, you should have 1099MISCs in hand if you are going to be receiving them at all.

TurboTax is great software for filing your Schedule C. If you don't know what a Schedule C is, you haven't been properly reporting your income....

As far as the original poster goes, I would consult a CPA or tax attorney.

--Rich

I believe you can take 50% off your taxes of all meals as well.

Refs and taxes
 

Be careful........

The Indianapolis IRS office is currently looking at Schedule C's closely and others are likely to be soon as well...Yours truly is getting audited on 2/24/05.

I AM NOT AN ACCOUNTANT, but I can tell you 3 things I believe from my experience preparing for my audit with my tax professional.

1. I am thankful I have always claimed every penny I have made officiating.

2. Meals are not deductible if you are not away from your tax home overnight.

3. If you have a day job, the only mileage that is deductible is from your primary job to your game site, one way. The trip to your day job and home from your game is considered commuting and is not deductible (even though trip home from game is likely more than trip home from work)Mileage to and from you games on your days off is not deductible.

I keep spotless records and the only issue I will get gigged on is the miscalculation/misapplication of deductible mileage.

I HIGHLY suggest you consult an Enrolled Agent (tax professional, most are former IRS auditors) for a specific guidance!

Re: Refs and taxes
 

If you live through it, come back and share your experience... give us some tips. :D

I've never taking meals off as a deduction (even though I don't eat out that much before or after games), but one of my fellow officials whose wife does taxes said it is legal to do. I've heard both sides of this over the past few years and I think different accountants will even tell you different things.

Again, not an accountant and I never claimed meals....

But I believe that unless you are away from your tax home OVERNIGHT, they are not deductible.

For a college official that is put up in a hotel room, deductible, so long as it is not reimbursible by another source (IE per diem from conference, etc.)

My $.02

We get screamed at to be more consistant. Sounds like CPA's should work on this.

If you work sports year round, or if you have another job where you are an independent contractor, ask your tax professional about incorporating. All my referee income is run through my family-owned S corp. It really is an advantage. I have a CPA do my personal and business taxes each year so I have to keep accurate records. I keep a fairly simple set of Excel spreadsheets and it's not a hassle at all.

How much of a deduction for fishnets are you taking this year?