Author Topic: Taxes and Football!  (Read 14546 times)

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Offline Cowtown Ref

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Taxes and Football!
« on: February 01, 2018, 09:03:24 AM »
Ok, being that time of year, I got some tax questions.

So with a lot more schools using arbiter pay, I'm getting 1099's on money I normally wouldn't have gotten since I didn't make more than $600 from a specific school.  But since Arbitor is now paying it, they give out 1099s, even though the amount consist of multiple schools (none of which individually paid more than $600.

So questions.

Is there a way to avoid paying taxes in this situation?  Or it is what it is?

How do you go about claiming expenses and what do you claim?

Is there a certain $ amount that you don't have to show receipts for?  My tax lady has said things like "claims under a certain amount don't require receipts".  IS that a fact or just means certain amounts don't draw red flags?

Any other tip/suggestions would be greatly appreciated.

Thanks

Offline ChicagoZebra

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Re: Taxes and Football!
« Reply #1 on: February 01, 2018, 09:31:32 AM »
You should always be paying taxes regardless if you get a 1099 or not.  P_S

You can claim deductions for uniforms, association fees, test supplies, etc.

I would say don't bother with receipts. Honestly, the IRS is not going to audit your $1.5k/year side gig. That said, any side business that has a high proportion of expenses to income is suspicious in their eyes.

Offline Etref

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Re: Taxes and Football!
« Reply #2 on: February 01, 2018, 09:57:13 AM »
You can also deduct any mileage to meetings, games, clinics, etc.

In some situations you can deduct meals before or after a game if it is a platform for discussion of the game, i.e. Pregame
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Offline JasonTX

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Re: Taxes and Football!
« Reply #3 on: February 01, 2018, 12:47:51 PM »
I claim all my income and expenses, including mileage to games, meetings, etc., and my refund has always been satisfying.

Offline riffraft

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Re: Taxes and Football!
« Reply #4 on: February 01, 2018, 01:32:52 PM »
There is no way to avoid "claiming" income when you are issued a 1099. That information is reported to the IRS.

That said (in that I am a CPA) I claim every penny that I make whether I receive a 1099 or not. No desire to lose my license for a few extra dollars.

However, I claim any and every expense associated with being an official. Uniforms, Dues, rule books, study guides, mileage (to and from games, to and from rules meeting, to and from meeting with my crew, etc). I also claim all after game meals, meals with crew meetings, any meal where officiating is the core reason.

As to receipts, I am not big on keeping receipts while credit card statements are not consider adequate documentation, I rely on these for tracking my expenses figuring more often than not (at least with my experience) an IRS agent will not give you a hassle. And also the odds of getting audited over the small amount made officiating just is extremely unlikely.

Offline ncwingman

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Re: Taxes and Football!
« Reply #5 on: February 01, 2018, 02:07:16 PM »
I claim all my income and expenses, including mileage to games, meetings, etc., and my refund has always been satisfying.

Strictly speaking, unless policies in Texas are very different, you probably don't have any withholdings from officiating pay (if you were to be paid $100, they wrote you a check for $100). Any tax you do owe would be paid with the return instead of throughout the year. If you didn't report the officiating income your refund would likely be a little larger.

Which is why not reporting the income is somewhat attractive...

Offline bctgp

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Re: Taxes and Football!
« Reply #6 on: February 01, 2018, 02:43:15 PM »
For UIL games there is travel pay included as part of our invoice we submit.  If we are paid the travel fee we can't deduct mileage to/from that game can we?  I only ask as I did not claim any of my mileage for UIL games where I received travel payment included.

Offline hefnerjm

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Re: Taxes and Football!
« Reply #7 on: February 01, 2018, 03:25:04 PM »
As has been said, whether you get a 1099 or not, you should ethically report what you make as income.  Considering how important integrity is to our industry, I would hope that people would retain that same integrity on and off the field. 

Personally, I think I have only ever gotten one 1099 per year and only accounts for a small portion of my game fees. 
So to be on top of the recordkeeping, I have a log book (small moleskin notebook) with everything I do for officiating. 
When I go to a chapter meeting, committee meeting, recruiting events, etc., I capture one-way mileage from my house to the meeting. (For chapter meetings, since we have them all at the same place, it is always 12 miles 1-way for me).
When I go to a game, I record date, # of games, what position I worked, and one-way mileage to the site.  When I get the check in the mail, I write how much I got paid and my tithe on that game check.

At the end of the year, I can quickly calculate my total mileage. (In 2017, I captured a total of 1628 miles.)   Since I own my car outright, I can deduct depreciation on my car as well as mileage.  TurboTax does a lot of these calculations for me since I've been doing it for a few years.

Any new uniforms/equipment each year is deducted, but this is usually small relative to...(see below).

As a young(er) official who aspires to working in the college ranks, I also deduct cost of clinics/camps and all related travel expenses.  One camp at 500-700 bucks, plus hotel, mileage and meals will more than offset all my HS sub-varsity and varsity income for the entire season.  Over time, the IRS might begin to look at this if I have several years of net negative operating expenses...however, as long as I can show that I am progressing towards a goal of one day working D1 ball, then I am not worried about answering those questions during any potential audit. 

For UIL games there is travel pay included as part of our invoice we submit.  If we are paid the travel fee we can't deduct mileage to/from that game can we?  I only ask as I did not claim any of my mileage for UIL games where I received travel payment included.
My understanding is that the mileage paid is treated as income, and then deducted through your business expenses.  Since schools don't split out line items for game fee and travel expenses, I just treat the full check as my game fee and recoop the travel expenses when I do my itemized deductions.   Of course, that said, with the passage of the tax reform bill, it will take a much higher threshold of deductions to itemize on next year's taxes. (standard deduction is doubled up to 24k from 12k for married filing jointly).
Coach: "I've been doing this 30 years!  I know the rules!"
Ref: "Are you married coach?"
Coach (suddenly offguard): "umm...yeah, why?"
Ref: "I've been married 30 years and my wife says there is still room for improvement"
Coach: "<silence>"

Offline hefnerjm

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Re: Taxes and Football!
« Reply #8 on: February 01, 2018, 03:28:26 PM »
Which is why not reporting the income is somewhat attractive...

Even if someone was in the 25% bracket, you would only save $25 on your tax burden/tax refund for every $100 of income that you failed to report.  The reward is WAY outweighed by the risk of not reporting.  I cant imagine anyone seeing that as attractive enough to risk the wrath of the IRS.
Coach: "I've been doing this 30 years!  I know the rules!"
Ref: "Are you married coach?"
Coach (suddenly offguard): "umm...yeah, why?"
Ref: "I've been married 30 years and my wife says there is still room for improvement"
Coach: "<silence>"

Offline GA Umpire

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Re: Taxes and Football!
« Reply #9 on: February 01, 2018, 03:52:20 PM »
There is no way to avoid "claiming" income when you are issued a 1099. That information is reported to the IRS.

That said (in that I am a CPA) I claim every penny that I make whether I receive a 1099 or not. No desire to lose my license for a few extra dollars.

However, I claim any and every expense associated with being an official. Uniforms, Dues, rule books, study guides, mileage (to and from games, to and from rules meeting, to and from meeting with my crew, etc). I also claim all after game meals, meals with crew meetings, any meal where officiating is the core reason.

As to receipts, I am not big on keeping receipts while credit card statements are not consider adequate documentation, I rely on these for tracking my expenses figuring more often than not (at least with my experience) an IRS agent will not give you a hassle. And also the odds of getting audited over the small amount made officiating just is extremely unlikely.

Guys:
Do you file your officiating income using a Form 1040, Schedule C?
If not, why not?

Offline ncwingman

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Re: Taxes and Football!
« Reply #10 on: February 01, 2018, 03:58:23 PM »
Even if someone was in the 25% bracket, you would only save $25 on your tax burden/tax refund for every $100 of income that you failed to report.  The reward is WAY outweighed by the risk of not reporting.  I cant imagine anyone seeing that as attractive enough to risk the wrath of the IRS.

Oh, I'm not trying to say it's a good idea... but I think some people see the tangible benefit of money in their wallet as outweighing the intangible risk of being audited which they have no personal frame of reference for. They also figure (likely rightly so) that the IRS isn't going to come after you for $25.

Guys:
Do you file your officiating income using a Form 1040, Schedule C?
If not, why not?


Schedules C and SE. The requirement for needing SE is noted on the C.

Offline ChicagoZebra

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Re: Taxes and Football!
« Reply #11 on: February 01, 2018, 04:30:50 PM »
Oh, I'm not trying to say it's a good idea... but I think some people see the tangible benefit of money in their wallet as outweighing the intangible risk of being audited which they have no personal frame of reference for. They also figure (likely rightly so) that the IRS isn't going to come after you for $25.

We Americans are good taxpayers, overall. We're not Greeks, where tax evasion is basically a national pastime.

Offline Magician

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Re: Taxes and Football!
« Reply #12 on: February 01, 2018, 05:04:50 PM »
I have included my officiating income most years I have been officiating. My expenses are mileage, dues, equipment, and clinic fees. There are very few years where I make any net profit so I'm not paying much if any additional taxes. I would rather report it consistently every year than give the IRS a reason to look into my finances. Unless you are getting paid a lot to work a lot of games very close to home (mileage is definitely my biggest expense), the likelihood of you netting out too much is slim.

Offline bossman72

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Re: Taxes and Football!
« Reply #13 on: February 01, 2018, 05:12:04 PM »
If your conference requires fitness standards, I would also deduct your gym membership.

Offline bama_stripes

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Re: Taxes and Football!
« Reply #14 on: February 02, 2018, 05:59:24 AM »
For UIL games there is travel pay included as part of our invoice we submit.  If we are paid the travel fee we can't deduct mileage to/from that game can we?  I only ask as I did not claim any of my mileage for UIL games where I received travel payment included.

I'd say that the mileage you are paid should be deducted from the actual allowable mileage expense as a reimbursement.

Offline Grant - AR

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Re: Taxes and Football!
« Reply #15 on: February 02, 2018, 08:58:40 AM »
Guys:
Do you file your officiating income using a Form 1040, Schedule C?
If not, why not?

I use a Schedule C for mine.  I don't do my own taxes because of my football income.  I used to do them myself, but it's worth a small fee for someone else to take care of them and deal with the IRS if I am audited.  Plus, my tax preparer is a former IRS agent.  :)

Something I haven't seen mentioned in this thread yet...if you are filling out a Schedule C (Profit or Loss from Business), you can deduct some of your home expenses based on where your "office" is at home.  If your office is 10% of the square footage of your home, you can deduct 10% of your utilities for this.  I have a very small office at home, but once one of my kids heads off to college in a few months, his bedroom is being turned into my office = more deductions for me.   :thumbup

Offline Welpe

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Re: Taxes and Football!
« Reply #16 on: February 02, 2018, 09:18:31 AM »
For UIL games there is travel pay included as part of our invoice we submit.  If we are paid the travel fee we can't deduct mileage to/from that game can we?  I only ask as I did not claim any of my mileage for UIL games where I received travel payment included.

My tax person has always had me treat that as regular officiating income and then deduct the mileage as normal.

Offline ElvisLives

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Re: Taxes and Football!
« Reply #17 on: February 02, 2018, 01:18:41 PM »
How about this thought:
Reduce tax rates to a maximum of 10% (graduated from 0 to 10%), and eliminate all deductions, credits, shelters, etc.  You make "X", you pay
Y".  Simple form.  No expense for an accountant. (I have tremendous respect for tax accountants, but I'd put them out of work if I was king.)

Then, there would be no need for this conversation.

Ah, then there is border security, immigration, citizenship, health care, terrorism, gun rights.....some other place and time. FlAg1

Offline ChicagoZebra

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Re: Taxes and Football!
« Reply #18 on: February 02, 2018, 01:34:18 PM »
How about this thought:
Reduce tax rates to a maximum of 10% (graduated from 0 to 10%), and eliminate all deductions, credits, shelters, etc.  You make "X", you pay
Y".  Simple form.  No expense for an accountant. (I have tremendous respect for tax accountants, but I'd put them out of work if I was king.)

Then, there would be no need for this conversation.

Ah, then there is border security, immigration, citizenship, health care, terrorism, gun rights.....some other place and time. FlAg1

But what is income? Income from a job - ok that's easy. But interest income? Capital gains? Business income?

You don't want to give credits to people who have children? How do you use tax to encourage certain policy goals, such as home ownership?

Offline riffraft

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Re: Taxes and Football!
« Reply #19 on: February 02, 2018, 01:36:30 PM »
I use a Schedule C for mine.  I don't do my own taxes because of my football income.  I used to do them myself, but it's worth a small fee for someone else to take care of them and deal with the IRS if I am audited.  Plus, my tax preparer is a former IRS agent.  :)

Something I haven't seen mentioned in this thread yet...if you are filling out a Schedule C (Profit or Loss from Business), you can deduct some of your home expenses based on where your "office" is at home.  If your office is 10% of the square footage of your home, you can deduct 10% of your utilities for this.  I have a very small office at home, but once one of my kids heads off to college in a few months, his bedroom is being turned into my office = more deductions for me.   :thumbup

Just remember your home office has to be for "exclusive and regular" use for your business for the deduction to be allowed. Personally I think the regular use would be hard to establish, though regular doesn't necessarily mean daily. One of those gray area which opens things up for IRS interpretation.

BTW I just add my mileage allowance into my total income and deduct my miles as an expense.

Offline TxSkyBolt

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Taxes and Football!
« Reply #20 on: February 03, 2018, 08:02:52 PM »
For UIL games there is travel pay included as part of our invoice we submit.  If we are paid the travel fee we can't deduct mileage to/from that game can we?  I only ask as I did not claim any of my mileage for UIL games where I received travel payment included.
With arbiter the travel and any per diem is lumped together into the 1099 total. If that’s he case since the travel etc is now counted as income, you should claim all expenses   


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Offline psv

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Re: Taxes and Football!
« Reply #21 on: February 04, 2018, 09:05:44 AM »
As others have stated, I claim every dollar.  I also claim every mile :)  every uniform, every meal, and every expense.  Schedule C.  I use an Online Tax preparation software with a review.  I have for years.  Makes it easy.

Someone also mentioned gym membership... i am going to ask about that :)

Other items that some have not mentioned:  I claim cell phone and internet.  In talking with my tax professional, since I need both to run my business I claim a percentage of those during the football season months (in Texas, its really July - December) . 




Offline TxSkyBolt

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Taxes and Football!
« Reply #22 on: February 04, 2018, 06:23:53 PM »
 :DEverything’s deductible until the audit. My motto


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« Last Edit: February 11, 2018, 12:07:36 PM by TxSkyBolt »

Offline TampaSteve

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Re: Taxes and Football!
« Reply #23 on: February 05, 2018, 09:40:13 AM »
Disclosure: I'm no CPA, nor do I play one on TV nor did I stay at a Holiday Inn Express last night.
Many, many things you can deduct when you report your officiating on schedule-C.
1-Any and all mileage, tolls, etc. to/from games & MEETINGS (no receipts but you can evidence easily)
2- any/all equipment (probably a credit card receipt)
3-a small percentage of your cell & internet bill before and during the season (certainly there's calls/emails/studying you've made to an assignor, or another official about football)
4-state registration fees & local assn dues
5-last year's tax prep fees specifically for your officiating (probably for next year since it seems not reported previously)

Offline TampaSteve

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Re: Taxes and Football!
« Reply #24 on: February 05, 2018, 09:49:16 AM »
I use a Schedule C for mine.  I don't do my own taxes because of my football income.  I used to do them myself, but it's worth a small fee for someone else to take care of them and deal with the IRS if I am audited.  Plus, my tax preparer is a former IRS agent.  :)

Something I haven't seen mentioned in this thread yet...if you are filling out a Schedule C (Profit or Loss from Business), you can deduct some of your home expenses based on where your "office" is at home.  If your office is 10% of the square footage of your home, you can deduct 10% of your utilities for this.  I have a very small office at home, but once one of my kids heads off to college in a few months, his bedroom is being turned into my office = more deductions for me.   :thumbup
To my understanding, when claiming a %'age of your home "office space" was the newest rage, perhaps year +/- 2005, the IRA was a bit lax.  But now a days the IRS has become much more strict with this - especially with a 'part time' gig like our officiating.