If you are paper filing on your own, many larger CPA firms, including the one i work for, has a tax system that we use so we can roll over all clients data to subsequent years. Setting up a new Sch C requires time, which depends on how much data clients have. Sch C flows through page 1 of a tax return as well, you dont just send a Sch C form to the IRS

Edit: Where i work we at least want to have a Sch C done in workpapers and in our tax system with backed up information and we also reconciliations to make sure everything is flowing correctly. So if there ever is an IRS Audit we can show them exactly how we got the information for the form and show them workpapers so they dont spend all day going through your receipts.

U can reduce your hobby income to zero. I have had a few years I won more then I could expense, but after paying taxes I'm sure I was at or below zero for the year.

Be careful with 'always a loss'. Somebody check me on this, but I believe you must show a profit at least once in 5 year period or IRS terms it a hobby, not a business, and all prior years' deductions are disallowed and become due.

I start saving receipts for everything I buy starting January 1 in case I win enough to get a 1099. I use Turbo Tax and there is nothing to filling in the blanks on a Schedule C for a "business" I call simply "Fishing".

I list only enough expenses to reduce my net fishing income to zero. If you try to make your fishing income negative in order to reduce your work or other income and pay less tax on it that's where you can get yourself looked at by the IRS. Tax law says that using fishing losses to reduce your overall tax burden makes fishing your business, and for an activity to quality as a business rather than a hobby you have to show a profit three out of five years.

In other words, if you go the show a loss on fishing one year route you will basically need to show a profit and pay taxes on fishing 3 out of the next 4 years. It's not as cut and dried as that, but that's the general idea.

+1

Just saying I save every receipt all year and put in a shoe box at end of the year add up itemized gas, lures rooms and so on, take all the numbers to my CPA with all my 1099 it cost I little but well worth it especially the last few years have had some very healthy winnings as I did this year and I don't mind spending the extra money to make sure I don't get audited!

You shouldn't get a 1099 unless you are $600 or over.

So how does all that work when you win in one of those tournament that are billed as "for amateur anglers only?

How can you fish those tournaments if you are in the business of bass fishing?

you can still fish tournaments and be an amateur. they break it down by guides or winning certain levels of tournaments within a certain time frame

$400 bucks ain't worth the hassle!

Schedule C it. Keep a log of expenses as well.

Great input from all. Thank you. I will be looking into a schedule C. I don't want to try to deduct more than I won. Like others said, I would just like to break even and not pay any extra taxes. I have my entry fees and hotel receipts that should cover my winnings. Thanks for the advice!