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Jan 23rd, 2013
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Got a 1099 for some winnings #14564538 12/14/22 03:40 PM
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GMTK Offline OP
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Won two hours at a Big Bass tourney a month ago and the organization that is running the tourney sent me a 1099. I won $1200 overall (which I split 50/50 with the guy I was fishing with). Anyone else get a 1099 from a fishing tourney? Any idea what the cutoff amount is? How much do yall withhold for taxes?

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Re: Got a 1099 for some winnings [Re: GMTK] #14564554 12/14/22 03:45 PM
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bassfishinglawyer Offline
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Hopefully you have a number of expenses to offset it??

Re: Got a 1099 for some winnings [Re: GMTK] #14564558 12/14/22 03:46 PM
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I believe it $600. So $595-$601 requires a 1099.

A friend does maintenance on rental houses. The boss pays him by a cash app. No idea how or if he files taxes. Considering he's a contract employee, barely lives above the poverty level.

Now, he doesn't have a choice. Anything over $600 and it comes with a 1099.

Re: Got a 1099 for some winnings [Re: GMTK] #14564562 12/14/22 03:48 PM
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Usually when you win over $1100.00 but most trails or BB tourneys will send one for any amount over $600 I believe. I have not had that problem the last couple years but I always withheld 30% for taxes. Also, you can do some planning if you think it will be a possibility and if you are paying taxes on fishing then you can write off a bunch of fishing costs as well. Gas is an overlooked one I think you can get back almost .25 per gallon used since your boat is not on a bridge or road when burning the fuel you bought. Just have to keep receipts for your fuel purchases for your boat.

DISCLAIMER: I am not a tax person and never will be. LOL I am probably wrong so seek professional advice when it comes down to tax time.


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Re: Got a 1099 for some winnings [Re: bassfishinglawyer] #14564593 12/14/22 04:10 PM
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Originally Posted by bassfishinglawyer
Hopefully you have a number of expenses to offset it??


You think a couple of hours won in a big bass tourney is a fishing business?

Assuming it is reported on a 1099-Misc as "Other Income", there is currently nowhere on a tax return to deduct hobby expenses. Hobby income is claimed on Schedule 1, line 8 and is not subject to SE tax. If it were me, I'd claim the $1200, pay the $100 tax (guess as I do not know your taxable income) and let my partner know he owed me $50, steak dinner, couple of MB jerkbaits, whatever.

A few people on here that do not know what they are talking about, but "have been doing it for years" will tell you to file it as a business on Sch C and take expenses against it to avoid tax altogether. Others will tell you to contact a CPA/EA for correct advice. You obviously do your own tax return or you would've called your "guy/gal" and asked this question instead of posting here.......... report it as above and there is no issue.

Re: Got a 1099 for some winnings [Re: GMTK] #14564603 12/14/22 04:18 PM
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I've talked to a few guys who have LLC's set up for fishing, but they are all pros and have CPAs that handle that. As it stands, I can't deduct gas/food/entry fee for this tourney as I don't have an LLC. I was pretty happy just to get a check.

Re: Got a 1099 for some winnings [Re: GMTK] #14564604 12/14/22 04:21 PM
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You can deduct entry fee, kinda like a 1099 g from a casino. You don't have to have an LLC. Your accountant will know.

Re: Got a 1099 for some winnings [Re: GMTK] #14564614 12/14/22 04:30 PM
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Welcome to Brandon's world.


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Re: Got a 1099 for some winnings [Re: GMTK] #14564643 12/14/22 04:50 PM
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Quote
Assuming it is reported on a 1099-Misc as "Other Income", there is currently nowhere on a tax return to deduct hobby expenses. Hobby income is claimed on Schedule 1, line 8 and is not subject to SE tax. If it were me, I'd claim the $1200, pay the $100 tax (guess as I do not know your taxable income) and let my partner know he owed me $50, steak dinner, couple of MB jerkbaits, whatever.


There you have it unless you want to raise a red flag.

Re: Got a 1099 for some winnings [Re: GMTK] #14564780 12/14/22 07:04 PM
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I would be careful about claiming a fishing business unless you are actually doing it professionally. Back in the late 90's - early 2000's, I fished a lot of tournaments and regularly got 1099's each year. My tax person set me up a fishing business and we started reporting all expenses.

Well, I got audited and IRS claimed my business was a hobby and I had to write them a big'o check. I know most of you keep getting lucky and think it is all ok, but watch out for the day you get that initial letter from Uncle Sam saying you are being audited..... cry






Re: Got a 1099 for some winnings [Re: GMTK] #14564781 12/14/22 07:06 PM
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One reason I ALWAYS get a players card at any casino I play in. Unlike gambling though, fishing does not have a players card and ya gotta keep track of what ya spend or invest to win that money. As a general rule, if you have to spend money to make money, there is usually a way to get some of it back from the IRS.


Aren't they all "reaction" bites?
Re: Got a 1099 for some winnings [Re: GTrigg] #14564801 12/14/22 07:29 PM
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Originally Posted by GTrigg
I would be careful about claiming a fishing business unless you are actually doing it professionally. Back in the late 90's - early 2000's, I fished a lot of tournaments and regularly got 1099's each year. My tax person set me up a fishing business and we started reporting all expenses.

Well, I got audited and IRS claimed my business was a hobby and I had to write them a big'o check. I know most of you keep getting lucky and think it is all ok, but watch out for the day you get that initial letter from Uncle Sam saying you are being audited..... cry


I have quite a few clients that their first year with me was because they were finally audited on their "business" (fishing, hunting guide, race car driver, etc) with their former preparer (CPA/EA/unenrolled preparer). Some of them experienced life changing deficiencies on those audits. Although it is rare if you look at the percentage of random audits, it's not as rare as winning the lotto and someone, somewhere wins a lotto/lottery of some form a few times per week. 2cents

Re: Got a 1099 for some winnings [Re: GeoFisher] #14564822 12/14/22 07:51 PM
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Originally Posted by GeoFisher
One reason I ALWAYS get a players card at any casino I play in. Unlike gambling though, fishing does not have a players card and ya gotta keep track of what ya spend or invest to win that money. As a general rule, if you have to spend money to make money, there is usually a way to get some of it back from the IRS.


Not being a jackwagon, but that's incorrect. There is a blueprint that a revenue agent will use to make a determination of whether your activity is a business or a hobby. It is a lot easier to label it a hobby than it is a business according to their standards (talking fishing tourney winnings here). If you have claimed that income as a business by filing it on Schedule C and take expenses to reduce that income (God forbid take a loss) and they determine it as a hobby under review, you cannot take a penny of expenses to reduce that taxable income. Many years ago you could itemize hobby expenses subject to a 2% floor if you Itemized on Schedule A, but that has not been the case for years. "Well, I've done it for many years and never been audited".................... As I said before, the odds might be in your favor on not getting a random audit- but the odds are from from Zero. 2cents more

Re: Got a 1099 for some winnings [Re: GMTK] #14564887 12/14/22 09:27 PM
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Create a Fishing LLC and Just Report everything

Re: Got a 1099 for some winnings [Re: 4Weight] #14564941 12/14/22 10:34 PM
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Originally Posted by 4Weight
Welcome to Brandon's world.

Sorry, but it was Trump's tax bill that did away with hobby expense deductions.


“No reasonable person would conclude that the statements were truly statements of fact”
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