Main Menu
Advertisement
Affiliates
Advertisement
Newest Members
Linda Robert, Gnhattien, Robert black, Calexander, Nauti_Bouy
102725 Registered Users
Top Posters
TexDawg 82877
hopalong 74395
Pilothawk 73435
JDavis7873® 67377
FattyMcButterpants 60518
John175 ® 59900
Tritonman 56830
Derek 56423
SkeeterRonnie 52463
LoneStarSon® 52225
facebook
Forum Stats
102725 Members
61 Forums
859134 Topics
11270734 Posts

Max Online: 36273 @ 01/23/13 02:34 PM
Page 1 of 2 1 2 >
Topic Options
#11340494 - 01/11/16 11:50 PM Taxes on tournament earnings
Okie State basser Offline
Outdoorsman

Registered: 03/04/10
Posts: 28
Loc: Coppell, TX
Got an income statement on my tournament earnings (it's not much but apparently over the $400 that requires you to report it). My question is, how do you all handle this since I obviously spent much more than I earned on fishing? Just looking for some advice. Thanks!

Top
#11340499 - 01/12/16 12:04 AM Re: Taxes on tournament earnings [Re: Okie State basser]
backatit Offline
Pro Angler

Registered: 06/23/10
Posts: 640
Pay the tax until you start adding some zeros to that amount

Top
#11340557 - 01/12/16 05:15 AM Re: Taxes on tournament earnings [Re: Okie State basser]
Jigfish Offline
Extreme Angler

Registered: 02/28/03
Posts: 2727
Loc: Tx
something I don't have to worry about. Winning, Me, That's funny.
_________________________
Thanks,

Kaufman High School Boat Captain

The weak call it obsession, the strong call it dedication!
Jigfish


Top
#11340610 - 01/12/16 06:39 AM Re: Taxes on tournament earnings [Re: Okie State basser]
KingwoodCat Offline
TFF Guru

Registered: 10/30/04
Posts: 36083
Loc: Broaddus TX
Originally Posted By: Okie State basser
Got an income statement on my tournament earnings (it's not much but apparently over the $400 that requires you to report it). My question is, how do you all handle this since I obviously spent much more than I earned on fishing? Just looking for some advice. Thanks!


You have to keep the receipts. Gas for truck and boat, fishing tackle receipts, figure a certain amount per day for food, lodging receipts, etc. Its a business and it has to be treated like one.
_________________________
"Any man who thinks he can be happy and prosperous by letting the government take care of him had better take a look at the American Indian".

Henry Ford

Top
#11340682 - 01/12/16 07:44 AM Re: Taxes on tournament earnings [Re: KingwoodCat]
ba$$fan Offline
Extreme Angler

Registered: 02/08/07
Posts: 1457
Loc: Aledo, TX
Originally Posted By: KingwoodCat
Its a business and it has to be treated like one.


I would presume that most people would be better off treating it as a hobby for tax purposes, not as a business. It always has been interesting to me that there isn't more discussion on how people handle tournament winnings with regard to taxes.

Top
#11340690 - 01/12/16 07:47 AM Re: Taxes on tournament earnings [Re: backatit]
RedRanger Offline
burro desagradable

Registered: 08/20/03
Posts: 20323
Loc: Frisco, Texas
Originally Posted By: backatit
Pay the tax until you start adding some zeros to that amount


Agreed......
_________________________


I'm a top 10er!

Top
#11340695 - 01/12/16 07:50 AM Re: Taxes on tournament earnings [Re: Okie State basser]
DHolding Offline
Extreme Angler

Registered: 03/13/12
Posts: 1071
Loc: Castroville Texas
If you don't have your receipts, you can also submit bank or credit card statements so you don't have to pay taxes or very little taxes on the hobby, of course that is something I don't have to worry about either, lol
_________________________
It does no good hearing if you are not listening.




Top
#11340696 - 01/12/16 07:50 AM Re: Taxes on tournament earnings [Re: Okie State basser]
WillieKetchum Offline
Pro Angler

Registered: 06/11/15
Posts: 547
Loc: Huntsville, TX
It's very simple. You will now have to file a Schedule C on your tax return. You then have 2 choices when filing.

Let's say you won $1000.

1) Claim $1000 in winnings and then claim $1000 in expenses (however you want to break it out - $500 in entry fees, $300 in fuel, $200 in tackle). This will simply show you breaking even at your business and you will not be required to pay any taxes on the $1000 winnings.
2) Claim $1000 in winnings and then claim ALL your expenses against it thus showing a LOSS for your business (fishing). In this scenario, if you claim $3000 in expenses, the additional $2000 loss will also knock down your W2 income allowing you to have to pay less taxes on it (resulting in a larger total return).

I do not suggest option #2. This is a good way to get audited and end up owing back taxes because at the end of the day, it's really just a hobby for you. I think if you can fish and it not cost you anything in the end, you're a winner. That's why I go with option #1.

As far as receipts...you do need to keep receipts, credit card statements, etc showing expenses just in case you do get audited. You will not send them in with your tax return.

Top
#11340697 - 01/12/16 07:51 AM Re: Taxes on tournament earnings [Re: Okie State basser]
GROD Online   content
Pro Angler

Registered: 09/12/10
Posts: 775
Loc: Eagle Mountain
^^^^^^.... Pay the tax unless there at least four zeros and you fish for a living. Kinda like gambling or winning a jackpot on a slot or table game... It's a hobby not a career.

Top
#11340716 - 01/12/16 07:59 AM Re: Taxes on tournament earnings [Re: Okie State basser]
TBassYates Online   content
TFF Celebrity

Registered: 12/21/01
Posts: 6117
Loc: Scurry, Tx - S/E of Dallas
Back when I was fishing all of the time I didn't win a lot of money but I was fishing pretty much every weekend for a few years.
I kept a spiral notebook and would use each page for a week and weekend for the year.
On each page for that time period I would list everything that had to do with a tournament or practicing for a tournament. Hotel bills, lures, entry fees, etc. and I used to write down mileage from the time I left the house until I got back home. I kept receipts and each year I would turn that over to my tax person. I was lucky enough for a couple of years to win 2 to 3 thousand dollars and for what I remember this really worked in my favor when tax time came around and I never had to pay any tax on winnings because of this record keeping.
_________________________

Top
#11340723 - 01/12/16 08:02 AM Re: Taxes on tournament earnings [Re: Okie State basser]
teamchampion Offline
Outdoorsman

Registered: 12/28/15
Posts: 30
Loc: Central Texas
Tax guy might charge you more to file additional forms than just paying the tax would be. Also could create situation that IRS looks at more closely and trigger an audit.

Top
#11340733 - 01/12/16 08:07 AM Re: Taxes on tournament earnings [Re: teamchampion]
UTDmiller Online   content
Extreme Angler

Registered: 10/01/13
Posts: 1656
Originally Posted By: teamchampion
Tax guy might charge you more to file additional forms than just paying the tax would be. Also could create situation that IRS looks at more closely and trigger an audit.


This right here, it takes time to set up a new Sch C in tax systems correctly, dont treat it like a business when it isnt a business. Im sure you spent more in tournament entry fees than that 1 bigger win. If anything i would just write it off as a hobby and show entry fees as expenses. I make copies of entry forms for all the bigger tournaments i enter during the year
_________________________
John Miller

Top
#11340748 - 01/12/16 08:12 AM Re: Taxes on tournament earnings [Re: Okie State basser]
JIM SR. Online   sick
TFF Celebrity

Registered: 09/25/06
Posts: 6130
Loc: NRH/Fork again ! GET THE NET
Years ago I competed in another sport on weekends and made quite a bit of money. If my memory serves me correctly I used to file a 'schedule C' return
along with my regular incomes. I kept all my expenses/incomes and gave to my tax guy. It helped to not have to pay taxes on my secondary winnings which usually was more-less a push.

Top
#11340764 - 01/12/16 08:17 AM Re: Taxes on tournament earnings [Re: Okie State basser]
Jumpin J Offline
Angler

Registered: 01/04/11
Posts: 257
I've been doing this, since 1996: File it separate, as fishing. You don't have to keep receipts, just add your Entry Fees and Mileage, to and from,(including practice), against any earnings you may have. Always a loss, deducts from Income Taxes, my Accountant doesn't charge me extra. Allowed cost of Mileage, is much easier than trying to nickel and dime them, with every little receipt.

Top
#11340787 - 01/12/16 08:25 AM Re: Taxes on tournament earnings [Re: UTDmiller]
ezbassin Online   content
TFF Guru

Registered: 01/15/04
Posts: 12212
Loc: Mansfield, Tx.
Originally Posted By: UTDmiller
[quote=teamchampion]Tax guy might charge you more to file additional forms than just paying the tax would be. Also could create situation that IRS looks at more closely and trigger an audit.


This right here, it takes time to set up a new Sch C in tax systems correctly,



^^^^^^^^^This is not correct. Schedule C is just an IRS form to list your business income and expenses, no "tax system set up", just fill in the blanks.




https://www.irs.gov/pub/irs-pdf/f1040sc.pdf


Edited by ezbassin (01/12/16 08:28 AM)

Top
Page 1 of 2 1 2 >



© 1998-2016 OUTDOOR SITES NETWORK all rights reserved USA and Worldwide