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Posts: 133
Location: Duluth, MN | I received a 1099 misc for tournament winnings. I have fished other tournaments in the past and never received a 1099 for winnings.
I work in the gaming industry and tournaments winnings have to be 500 times the entry amount before it has to be taxed. Laws may be different but just wondering if anybody has run into this with tournament winnings. |
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Posts: 32922
Location: Rhinelander, Wisconsin | Taxable. Easy to expanse out, though, unless you win a BASS Elite. |
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Posts: 994
Location: Minnesota: where it's tough to be a sportsfan! | I have a few times. Take it to your tax guy. Not only does it depend on the amount it depnds on if you are claiming deductions on behalf of a fishing biz. etc...The 1099 is filed with the IRS though, so you do need to pay attention to it. |
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Posts: 1405
Location: Detroit River | They are taxable. The Fed requires that a 1099 be issued for any payment of $600 or more.
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Posts: 265
Location: McGuire AFB, NJ | Ya I got slammed on the 1099 Misc this year. Wrote most of it off though!!! |
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Posts: 1220
| Couple of things....but you really want to run anything and everything by your tax preparer. One, no question whatsoever that your winnings are taxable, that's why you have to give your SSN to the tournament trails that you sign up to fish in. Naturally, you also would never want to be dumb enough to think that the a guy who remembers to send you your half of the 1099 forgot to send the other half to the IRS. That said, you are clearly able to use all of your documented expenses to cancel out the winnings, even if you are not a "professional" angler as your whole livelihood. Here's the tricky part: you really have to have all sorts of documents, probably some meaningful earnings too, if what you are looking for is to deduct all sorts of expenses against not too many earnings. The IRS will likely not put up any fight over your proof that you spent $1000.00 for every $100.00 that you earned--that puts you with me and most of the rest of the guys. What they are not to likely to lay down for is trying to deduct what is really a "hobby" expense as if it were a real business, therefore eating into the taxes that your real employer deducted from your wages and which the IRS really would not like to give back. That's really all there is that separates a guy like me from a guy like Kevin VanDam. I might like to think of my self as a pro now and then, but Uncle Sam would be the first to remind me that I am a scrap metal dealer who likes to fish on the weekends. Marty Forman |
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Posts: 133
Location: Duluth, MN | Zib - 2/14/2011 9:50 AM
They are taxable. The Fed requires that a 1099 be issued for any payment of $600 or more.
$600 is the amount required amount for a payment or prize with no entry fee
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Posts: 1405
Location: Detroit River | yooper - 2/14/2011 9:31 PM
Zib - 2/14/2011 9:50 AM
They are taxable. The Fed requires that a 1099 be issued for any payment of $600 or more.
$600 is the amount required amount for a payment or prize with no entry fee
It doesn't matter if there's an entry fee or not. The IRS goes by the amount paid out. You can deduct the entry fee from the amount on the 1099 on the Fed return. You will report the 1099 Misc income on the 1040 page 1 if there are no expenses to deduct. In your case you will have expenses so you will report the income on Schedule C along with all related expenses you incurred for the tournament.
Examples of expenses you could deduct would be entry fees, hotel/lodging, food, mileage on your tow vehicle (round trip), gas used in the boat etc. I wouldn’t even attempt to deduct cost of lures & gear etc because the IRS will consider this “Hobby income”, in which case expenses related to “Hobby Income” is NOT deductible.
By replying to your post I’m assuming that you occasionally fish tourneys for the fun of it & don’t consider it a business or career.
BTW, I’m a government tax auditor by trade & have worked for a CPA firm preparing individual, small businesses & corporate tax return as well has having my own personal clients & also worked for H&R Block for 5 years (IMO H&R Block is a rip off).
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Posts: 133
Location: Duluth, MN | Zib - 2/15/2011 1:17 PM
yooper - 2/14/2011 9:31 PM
Zib - 2/14/2011 9:50 AM
They are taxable. The Fed requires that a 1099 be issued for any payment of $600 or more.
$600 is the amount required amount for a payment or prize with no entry fee
It doesn't matter if there's an entry fee or not. The IRS goes by the amount paid out. You can deduct the entry fee from the amount on the 1099 on the Fed return. You will report the 1099 Misc income on the 1040 page 1 if there are no expenses to deduct. In your case you will have expenses so you will report the income on Schedule C along with all related expenses you incurred for the tournament.
Examples of expenses you could deduct would be entry fees, hotel/lodging, food, mileage on your tow vehicle (round trip ), gas used in the boat etc. I wouldn’t even attempt to deduct cost of lures & gear etc because the IRS will consider this “Hobby income”, in which case expenses related to “Hobby Income” is NOT deductible.
By replying to your post I’m assuming that you occasionally fish tourneys for the fun of it & don’t consider it a business or career.
BTW, I’m a government tax auditor by trade & have worked for a CPA firm preparing individual, small businesses & corporate tax return as well has having my own personal clients & also worked for H&R Block for 5 years (IMO H&R Block is a rip off ).
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