Tax Write-Off-able?

[vbzebra]

Hey all,

May be a "well, duh" question, but are uniforms and equipment and all that good stuff able to be tax write-offs?

[Bob M.]

REPLY: Yes, since that equipment and clothing is solely used for performance of your role as an official. Contrast that to getting a new sports jacket which you intend to wear to the game. That's not deductible since it can be used for other purposes. Help me out guys...isn't that correct?

Plus, there are a whole bunch of other legitimate expenses that can be deducted: mileage to/from games, meetings, clinics to the extent that you're not reimbursed for that travel, clinic attendance and other training expenses, purchase of books (e.g. rule books, Reddings guide, etc.), association dues, state association registration fees, NASO membership, subscriptions to officiating resources (REFEREE Magazine, USA Football online, etc.), meals and lodging (subject to certain restrictions)

[vbzebra]

Originally Posted by Bob M.

REPLY: Yes, since that equipment and clothing is solely used for performance of your role as an official. Contrast that to getting a new sports jacket which you intend to wear to the game. That's not deductible since it can be used for other purposes. Help me out guys...isn't that correct?

Plus, there are a whole bunch of other legitimate expenses that can be deducted: mileage to/from games, meetings, clinics to the extent that you're not reimbursed for that travel, clinic attendance and other training expenses, purchase of books (e.g. rule books, Reddings guide, etc.), association dues, state association registration fees, NASO membership, subscriptions to officiating resources (REFEREE Magazine, USA Football online, etc.), meals and lodging (subject to certain restrictions)

Wow! Alot more than I first blindly realized. Thanks for the info! I'll definately keep everything tracked to the T!!

[Tom.OH]

Make sure you keep receipts for anything you do deduct. If you do not have all of them and the IRS picks you to audit, my guess is they will really pull out the fine tooth comb checking everything on the tax return.

[Forksref]

The last 2 years I've attended a clinic that was more than 300 miles away. The mileage deduction as well as meals and registration made my officiating income almost a wash.

[refbuz]

Originally Posted by Bob M.

REPLY: Contrast that to getting a new sports jacket which you intend to wear to the game. That's not deductible since it can be used for other purposes. Help me out guys...isn't that correct?

I think that you can write a portion of the jacket off, but it is probably not enough to warrant doing so.

Be careful with the write offs, I was advised to be sure to show some income and you probably want to avoid taking a loss when you file.

[Rick KY]

Don't forget that taking those deductions should be offset by the fees you earn for each game. There is income to go with those expenses.

[Bob M.]

Originally Posted by refbuz

I think that you can write a portion of the jacket off, but it is probably not enough to warrant doing so.

Be careful with the write offs, I was advised to be sure to show some income and you probably want to avoid taking a loss when you file.

REPLY: I did a little more research here...

The IRS allows a miscellaneous tax deduction for the cost and upkeep of work clothes on Schedule A if you itemize your deductions. To take this deduction, you must be required to wear these clothes or uniforms as a condition of your employment. The clothes also must not be suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.

Protective clothing. You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves.

Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers.

So no part of our new sports jacket is deductible.

[vbzebra]

Originally Posted by Bob M.

REPLY: I did a little more research here...

The IRS allows a miscellaneous tax deduction for the cost and upkeep of work clothes on Schedule A if you itemize your deductions. To take this deduction, you must be required to wear these clothes or uniforms as a condition of your employment. The clothes also must not be suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.

Protective clothing. You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves.

Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers.

So no part of our new sports jacket is deductible.

Gotcha about the jacket...but based on the above, the uniforms and equipment are still eligible, correct?

[vbzebra]

Originally Posted by Bob M.

REPLY: I did a little more research here...

The IRS allows a miscellaneous tax deduction for the cost and upkeep of work clothes on Schedule A if you itemize your deductions. To take this deduction, you must be required to wear these clothes or uniforms as a condition of your employment. The clothes also must not be suitable for everyday wear.

It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing.

Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc.).

Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear.

However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible.

Protective clothing. You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves.

Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers.

So no part of our new sports jacket is deductible.

Is most of this info on the irs's website?

[refbuz]

Originally Posted by vbzebra

Gotcha about the jacket...but based on the above, the uniforms and equipment are still eligible, correct?

Yes. The uni's and all of the accessories (whistles, flags, etc) are deductible.

Originally Posted by Bob M.

So no part of our new sports jacket is deductible.

If it is lined with kevlar does it count as protective clothing?

[greymule]

If you're an official, you're a private vendor in business for yourself. You will probably file a Schedule C (profit or loss from business). If anyone reports the money he paid you, it will be on a 1099 form. That jacket is most certainly 100% deductible. You bought it to promote, market, or advertise yourself and your services. That stuff about wearing it on the street applies to employees who receive W-2 forms, not private vendors supplying services. (That would be the Schedule A that Bob M mentions. In fact, the deductions you take as an official appear on Schedule C, not Schedule A.)

If half the phone calls you make involve officiating, then half your phone bill is deductible. If you use your cell phone 90% for officiating purposes, then 90% of your cell phone bill is deductible.

Most businesses lose money their first year. There's nothing unusual about having a loss, even a significant one, your first year officiating.

Just a note: the standard tax programs (e.g., Turbotax) are generally made for people who receive W-2 forms from their employers. A sports official would need the version that includes Schedule C. That version usually costs about double the standard version. (But it's well worth it, and anyway, you can deduct the entire cost of any tax software you purchase.)

[Mark Dexter]

Originally Posted by greymule

That jacket is most certainly 100% deductible. You bought it to promote, market, or advertise yourself and your services. That stuff about wearing it on the street applies to employees who receive W-2 forms, not private vendors supplying services. (That would be the Schedule A that Bob M mentions. In fact, the deductions you take as an official appear on Schedule C, not Schedule A.)

While you are correct that the Schedule A test does not apply here, it is rather the "ordinary and necessary" test that does. I doubt that the IRS would allow a standard piece of men's clothing (that can be worn at other times) to be deducted - even if you locked it in a closet and only wore it to/from games.

If half the phone calls you make involve officiating, then half your phone bill is deductible. If you use your cell phone 90% for officiating purposes, then 90% of your cell phone bill is deductible.

That's not entirely true. See IRS Pub. 535 for a more detailed explaination.