Tax Question

[packersowner]

We'll see if Big Brother is monitoring this site.....

As far as I know, I am a contracted individual and I am being hired by the assignor who has been contracted by the schools. I get paid $55 for one sub-varsity game and $90 if I work two sub-varsity games.

How many of you are tracking and recording mileage for tax purposes?

Second question, I have always assumed the first game has some "included" mileage factor into it, which is why the second game is less money. I can check with my assignor, but if thats true, how does one factor this into their mileage claim for tax purposes?

Maybe the third question should be...how many of you pay taxes?

[just another ref]

Originally Posted by packersowner

Second question, I have always assumed the first game has some "included" mileage factor into it, which is why the second game is less money. I can check with my assignor, but if thats true, how does one factor this into their mileage claim for tax purposes?

One doesn't. Mileage deduction for the trip is what it is, whether you call one game or seven when you get there.

[Rich]

Originally Posted by just another ref

One doesn't. Mileage deduction for the trip is what it is, whether you call one game or seven when you get there.

If part of the check is a mileage allotment, it goes against the mileage deduction and is not included in income. So, in the OP's situation -- if he's getting $90 and only $35 for the second game, it may be that $20 is travel money.

The 2012 IRS rate is 55.5 cents per mile. That covers about 36 miles of driving. Anything above that, deduct 55.5 cents a mile from the game fee.

(Really, it doesn't matter since mileage deductions go straight against Schedule C income. Count it as income, count it as a mileage allotment, it's all going to come out the same.)

I was just working on some of this tonight, come to think of it.

[Kelvin green]

I will interject here that just because you drive to a game does not make it tax deductible mileage. Trips from home to a game are not generally deductible if it is in your normal metropolitan area. Trips from one place of employment to another is...


Now for the legal stuff


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[grunewar]

Seriously - if you use the "Search" function at the top of the Forum and type in "taxes" you will see a good many discussions we've had on this subject over the many years. Good background information.

Bottom Line - check with a tax professional.

[MD Longhorn]

Originally Posted by Kelvin green

I will interject here that just because you drive to a game does not make it tax deductible mileage. Trips from home to a game are not generally deductible if it is in your normal metropolitan area. Trips from one place of employment to another is...

I believe you are incorrect unless you are employed by the school you're working at. Since officials are generally not - this is not "another place of employment" - it is a cost of doing business for an independent contractor.

[scrounge]

Originally Posted by MD Longhorn

I believe you are incorrect unless you are employed by the school you're working at. Since officials are generally not - this is not "another place of employment" - it is a cost of doing business for an independent contractor.

No, it's correct. It's not actually a place of employment that's relevant here, it's that the school is a 'temporary work site'. That's the distinction, not the employee/contractor status. Trips from home to work - be it work as an employee, contractor, etc - are not deductible. That's just going to work, commuting, normal course of business stuff. But going from one work site to another, whether it's for business or for work as an official, is deductible. It's a departure from your normal work-to-home pattern and is being done for work reasons, so it's a deductible expense.

If you were to travel from your office to a plant and that's not something you routinely do, that mileage would also be deductible if unreimbursed. Same principle - unrelated to employee status.

[brainbrian]

Originally Posted by Rich

The 2012 IRS rate is 55.5 cents per mile.

And some schools around me pay 40 cents/mile. I've always wondered if I was able to claim the remaining portion.

[Adam]

Originally Posted by brainbrian

And some schools around me pay 40 cents/mile. I've always wondered if I was able to claim the remaining portion.

If you claim the income....

[Rich]

Originally Posted by brainbrian

And some schools around me pay 40 cents/mile. I've always wondered if I was able to claim the remaining portion.

The easiest way is to claim all of it as income and deduct the full 55.5 cents (56.5 cents in 2013) per mile driven roundtrip. While not technically accurate, the bottom line is the same.

I am not a tax professional, merely an official who's been filing a 1040 with a Schedule C for as long as I can remember.

[maven]

Originally Posted by packersowner

We'll see if Big Brother is monitoring this site.....

As far as I know, I am a contracted individual and I am being hired by the assignor who has been contracted by the schools. I get paid $55 for one sub-varsity game and $90 if I work two sub-varsity games.

How many of you are tracking and recording mileage for tax purposes?

Second question, I have always assumed the first game has some "included" mileage factor into it, which is why the second game is less money. I can check with my assignor, but if thats true, how does one factor this into their mileage claim for tax purposes?

Maybe the third question should be...how many of you pay taxes?

1. I record mileage for every game, local meeting, and any other travel I do for officiating. I record everything in a spreadsheet (I prefer Google Docs, so I can access the spreadsheet from multiple platforms).

2. As Rich points out, it doesn't matter. Income is income, and expenses are expenses.

3. I've paid tax on every dime I've ever earned. For one thing, in my state you'll lose your license if convicted of tax evasion or related crimes. To me it's worth a couple hundred bucks a year not to run this risk.

[KJUmp]

Originally Posted by maven

1. I record mileage for every game, local meeting, and any other travel I do for officiating. I record everything in a spreadsheet.

3. I've paid tax on every dime I've ever earned.

Of course less the IRS applicable and allowable expenses.

And yes, spreadsheets are a godsend for keeping track of mileage and all our other officiating related expenses during the season....or the entire year for those of us who officiate multiple sports.

[Welpe]

Originally Posted by Kelvin green

I will interject here that just because you drive to a game does not make it tax deductible mileage. Trips from home to a game are not generally deductible if it is in your normal metropolitan area. Trips from one place of employment to another is...

The certified tax person I pay to do my taxes disagrees due to the nature of our work and each school being a temporary work site. This is what I do, everybody has to make their own decision.

I document all officiating income by game, including mileage compensation. That is all totaled up as income. All miles driven are recorded as expenses and are totaled up with all other expenses for the year.

I claim every cent I make officiating, 1099 issued or not. I also be sure to write off everything I can including uniforms, assigning fees, chapter dues, insurance fees and such. I don't bother trying to deduct part of my cell phone, internet or laundry expenses. I figure the small gain isn't worth the increased chance of an audit (though there are folks that do deduct those things).

Thanks for the reminder to get working on this. I need to quite being so lazy and actually keep up with these records throughout the year.

[pzebra]

Another tax question...
I was just licensed in mid December 2012. I paid registration and clinic fees, purchased uniforms, equipment etc. in December 2012.

But I did not get my first paying gig until January 2013. I have receipts for all this, and it totals around $200.

So is it worth while for me to file the schedule C showing a loss in 2012? Or I am just asking for trouble? (I know I cannot file C-EZ because I had no officiating income in 2012).

[Camron Rust]

Originally Posted by pzebra

Another tax question...
I was just licensed in mid December 2012. I paid registration and clinic fees, purchased uniforms, equipment etc. in December 2012.

But I did not get my first paying gig until January 2013. I have receipts for all this, and it totals around $200.

So is it worth while for me to file the schedule C showing a loss in 2012? Or I am just asking for trouble? (I know I cannot file C-EZ because I had no officiating income in 2012).

IANAL, but, you should be fine. If they question it, you will just need to show that you received related income in 1/2013 that will go on the next year's taxes. Many business have start-up expenses that are incurred before income is received.