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Author Topic: 1099 and ABC taxes  (Read 7789 times)

shipper50

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1099 and ABC taxes
« on: January 30, 2006, 07:14:57 AM »
Am I the only one who has gotten his 1099 in the mail? I have never gotten money back from a tournament before in the past. I got $762.13. I don't remember getting the change back.

Any help from past money winners would be appreciated....
Shipper
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shipper50

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Re: 1099 and ABC taxes
« Reply #1 on: January 30, 2006, 04:35:25 PM »
Thanks Bob,

I got my money from brackets and about 15 from team. I did keep my room receipt and will see what my tax people say...


Shipper
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TWOHAND834

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Re: 1099 and ABC taxes
« Reply #2 on: January 31, 2006, 12:49:11 AM »
This is the same rip off we talk about every year, in how you can put up $1,000 in entry fees and get back $1200, profitting $200, but you have to claim the $1200 on your tax returns.  Thats such bull.  Let me go ahead and beat you guys to the punch that will reply as saying that if we dont like it, dont enter.
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Steven Vance
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Steven Vance
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TheIronMan

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Re: 1099 and ABC taxes
« Reply #3 on: January 31, 2006, 07:14:54 AM »
HI Steve. You can write off all of your expenses vs the $1200 income. Rooms, travel, equipment, travel, food, etc. If your pro shop were to sponsor your bowling at USBC, you could write it off that way. I know pro shop owners who do that. If not, use Schedule C.

Jim King
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tjj300

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Re: 1099 and ABC taxes
« Reply #4 on: January 31, 2006, 12:25:40 PM »
I think the point is that for tournaments and other competitions, 1099's should be net income. This way you don't have to do the level of recordkeeping that you have to do now.  The way it is currently is if I  spent $1000 and won $1000, it is my responsibility to prove I had those $1000 in expenses, even when the issuer of the 1099 had that information.
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TheIronMan

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Re: 1099 and ABC taxes
« Reply #5 on: January 31, 2006, 12:36:32 PM »
I agree. In a perfect world, it would be that way, but many people don't know that they can deduct bowling expenses vs. prize money won. I think USBC and High Roller will send a statement that details no. of brackets, winnings, etc. Not sure if any others do.
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shelley

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Re: 1099 and ABC taxes
« Reply #6 on: January 31, 2006, 12:39:05 PM »
quote:
I think the point is that for tournaments and other competitions, 1099's should be net income. This way you don't have to do the level of recordkeeping that you have to do now.  The way it is currently is if I  spent $1000 and won $1000, it is my responsibility to prove I had those $1000 in expenses, even when the issuer of the 1099 had that information.


The problem is that who's to say it's your $1000?  Someone else could sponsor you for a share of the winnings.  Your parents might be footing the bill.  Or you might have a sugardaddy who takes his or her share in, you know, "favors".

The bottom line is that it may not be your expenses.  I agree that it's far more likely to be your own money, and that the smart thing is to make the common case (a net loss or breaking even) the easy way, but in the end, they'd have no way of knowing what the situation really is.

Additionally, tax burdens are almost always on you anyway.  Any kind of deduction is your responsibility, whether it's the purchase of scrubs for work (my wife can write those off), educational expenses, or bowling expenses.  It would be the exception to make bowling winnings work that way seeing as how almost nothing else does.

Don't get me wrong.  The convenience would be nice for you.  But the USBS would have to know ahead of time who paid and what your real expenses were if they were going to report net instead of gross.

SH
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tjj300

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Re: 1099 and ABC taxes
« Reply #7 on: January 31, 2006, 09:05:04 PM »
But if you don't itemize, you don't use schedule A.  If you did, you can deduct it as a hobby.  Schedule C you can use even if you take the standard deduction.
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DanR

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Re: 1099 and ABC taxes
« Reply #8 on: February 02, 2006, 12:00:15 PM »
In doubles, my partner and I cashed for a decent amount in the doubles brackets.  Why does only one person get the total amount on their 1099?  With all the programs available they can't figure out a way to split it up?
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shipper50

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Re: 1099 and ABC taxes
« Reply #9 on: February 13, 2006, 08:20:13 PM »
Here is an update to my post. I filed my taxes today and since I am retired and don't have much to deduct, I found out I can't use the money I paid in to win $762 in brackets as a deduction and had to pay $192 in taxes for the money I won. I kept my bracket buy in sheets and the room expenses to no use.

And they talk about bowling in the ABC. Bullshi-.

Shipper
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dogman666

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Re: 1099 and ABC taxes
« Reply #10 on: February 14, 2006, 01:40:40 PM »
Bottom line the tax code is outdated.  One should not have to pay any taxes unless it's over say 5,000.
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shipper50

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Re: 1099 and ABC taxes
« Reply #11 on: February 14, 2006, 03:47:46 PM »
quote:
The only way to do this properly and not get penalized is to file a Schedule C with your tax return.  It is not necessary to be able to itemize deductions to file Schedule C.  By using the schedule C you can use all the actual facts surrounding your situation.  For example If you were sponsored in brackets, and had to share your winnings you can reflect the total from the 1099 in gross, subtract the entry fee portion in fees, and also subtract anything you had to pay back to your sponsor.  In addition you can figure in travel, meals, and lodging on the schedule C if you were on the road over night for the tournament.

I keep track of all my tournaments for the year, not just those where I know I will get a 1099.  Then I use the entire tournament season for use in preparing the Schedule C.  The only word of caution is that you should be careful if you start showing net losses on the Schedule C.



My tax preparer is H&R block and she said since I don't itemize and have enough to do so, I cant deduct this from my taxes. She said if it was another form from the ABC I could?

Should I call H&R and ask them?

Shipper
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CPA

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Re: 1099 and ABC taxes
« Reply #12 on: February 14, 2006, 04:37:36 PM »
The 1099 income should be reported on Schedule C and the related expenses deducted against the income.  You do not need to itemize to use a Schedule C.

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TheIronMan

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Re: 1099 and ABC taxes
« Reply #13 on: February 14, 2006, 06:55:14 PM »
Bob and CPA are correct. H & R Block has told people this before, but they are full of it. They don't understand the situation completely.
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ChrisLak

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Re: 1099 and ABC taxes
« Reply #14 on: February 14, 2006, 06:57:03 PM »
Yeah i got a nice one the other year for reno when i was in ever bracket in team event and shot 728. That was a nice 2900 1099
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