Tax man cometh

Altor

Just curious what others are doing with this new line for 2018. I'm trying to figure out IRS Form 1040, line 9. I glanced through Publication 535 as well.

Are other people deducting 20% of their officiating income on Line 9? And by income, I'm going to assume I should use Schedule C-EZ, line 3, and figure 20% of that.

Stat-Man

I know taxpayers won't get a §199-A deduction if their self-employed insurance premiums are equal to or greater than their Net Schedule C income.

For anyone using tax software, the program should handle this deduction automatically.

Mark T. DeNucci, Sr.

I read through the instructions and boy does my brain hurt. Bur from what I could decipher is that officiating income is not Qualified Business Income because income from athletics is an exception to the Qualified Businesses.

MTD, Sr.

Altor

But, I think that exception only applies if "a taxpayer’s taxable income exceeds $315,000 for a married couple filing a joint return, or $157,500 for all other taxpayers". You are doing better than me if you had to apply that exception.

teebob21

Mark T. DeNucci, Sr. wrote
I read through the instructions and boy does my brain hurt. Bur from what I could decipher is that officiating income is not Qualified Business Income because income from athletics is an exception to the Qualified Businesses.

MTD, Sr.

For what it's worth, HR Block Online offered me the 20% deduction for my consulting income (which I expected NOT to be a qualified business) but not for my umpiring income. I don't have the NAICS code I used immediately in front of me.

That said, between mileage, flights, laundry, registration fees, and uniform purchases, over 80% of my umpiring money got expensed. I'll have to look into this gig and see if I actually make anything next year. 😀

Stat-Man

teebob21 wrote
I don't have the NAICS code I used immediately in front of me.

I used NAICS Code 711219. That appears to be the current one for referees and umpires.

Mark T. DeNucci, Sr.

Stat-Man wrote
I used NAICS Code 711219. That appears to be the current one for referees and umpires.

Are you talking about Line B? If you are a betting code is: 541990

MTD, Sr.