I hear a rumor going around say that if you make more than $500 in one tournament that you have to claim it on your taxes. Is this true? Is the pdga going to send in all the player winnings to IRS? I dont have to worry about it till august, but I figured I would find out for some of the pro's I play with.

I hear a rumor going around say that if you make more than $500 in one tournament that you have to claim it on your taxes. Is this true? Is the pdga going to send in all the player winnings to IRS? I dont have to worry about it till august, but I figured I would find out for some of the pro's I play with.



At MOST events IF you make over $600 you WILL recieve a 1099.

It IS considered "Income"... Ive never had to deal with this because I just dont earn that much oney...
A top player may be able to tell you how it dealt with...
Id imagine that IF it were you SOLE source of Income that your EXPENCES would balence things nicely :p

I hear a rumor going around say that if you make more than $500 in one tournament that you have to claim it on your taxes. Is this true? Is the pdga going to send in all the player winnings to IRS? I dont have to worry about it till august, but I figured I would find out for some of the pro's I play with.



If you receive more than $599 from any one host club, you are supposed to receive a form 1099 from the host club stating that they paid you X dollars. Some clubs have been lacking on this, but even if you do not receive a 1099, you are repsonsible for reporting the income.

You are supposed to report ALL of your income for tax purposes, usually on 1040 Schedule C, which is the self-employment schedule. You can also deduct some expenses (this year, you can deuct mileage at 44.5 cents per mile)....typically you need to show a profit at least twice in 5 years, or the IRS will consider it a hobby. I am also a sports official (high school football and swimming), so I claim any disc golf related trips (whether to marshal, officiate, or perhaps do some work for my real boss at DGW) as part of my sports officiating and consulting business.

Just my $.02. Remember, I am not an accountant, and I'm certainly NOT your accountant, so get advice from your local CPA. Rules regs vary by state as well.

Chap

Innova will send you a 1099 if you cash at USDGC. Mitch received his last year after he filed taxes b/c they had an old address and he didn't actually receive the form until late April. So yeah, if you cash (at least over $599) at USDGC, wait until you get the 1099 from Innova b/c they're reporting it to the feds!

If you earn any money (including Ace funds) playing disc golf, the IRS requires you to report it on your return; even if you don't receive a 1099. :eek: Of course, you can deduct your expenses in earning that income (entry fees, etc.) :D This is too complex of a discussion to hold on the forum because each individual's circumstances are different. :eek: I suggest that you find a competent local tax preparer to contact for more details. :cool:

Robert W. Decker, CPA
PDGA Treasurer
#17745

That would be great if you could write off your Airline tickets , Gas milage , rental car , hotel room , entry fees , plastic bought to compete at each event , food , clothing , shoes..etc...

Thats what I am doing. If I have to report it as income,I WILL report the expenses associated with the trip as well.

Deano... :cool:

If you report the income you should be able to report the expenses except clothing and shoes. Businessmen don't get to report suits, the only clothing you can report is uniforms.

This is true,but you can write off air,hotel,mileage,entry.

Atleast this much .......................That would be great if you could write off your Airline tickets , Gas milage , rental car , hotel room , entry fees , plastic bought to compete at each event !!!!!!! The most I have won would be under $ 1000.00 , the most I have spent on a 10 day tour would be $ 3000.00.

I am not an accountant so I would check and make 100% sure. But if you claim the money you make playing then you are able to deduct whatever it costs to participate in the event. The only thing on your list that I am not for sure about is the discs. Because in order to deduct it for business it is supposed to be only used for business(same reason for clothing) is my understanding and you probably use the discs at other rounds. They may be OK but I would definitely check, the rest of the stuff as long as you are claiming the winnings I would be willing to take into an audit, which is also what I ask before I take anything off on my taxes. Make sure you have the receipts though.

I am an accountant. I can tell you that you need to pay close attention to hobby loss rules if you are going to attempt to write off the income with expenses and take a loss, it is ok to offset the income to ZERO but taking a loss is another thing.............you can write off ANY expenses related to "disc golf" but like I said, read up on Hobby Loss Rules.

Good job Will. :cool:You beat me to the punch by discussing the hobby loss rules. :DSomeone else also noted that you cannot deduct personal use items. ;) There are some variations to these rules and that is why each individual should discuss their personal situation with a qualified tax professional. The safest position is to make certain that you use checks or charge cards to pay for everything, keep all of your receipts and deduct only the direct expenses of competition (including travel). Also, following the hobby loss rules by limiting your deductions to your income (ie $0 net income) will reduce your overall risk to almost zero.

On the other hand, a good tax professional will discuss with you the opportunities and risks of taking your expenses even if they exceed your net income. :) Those rules are more than I wish to go into at this time and you have to be very careful to follow them closely or the IRS will take a harsh look at you. :confused: Again, if you want to go this direction, you need to contact a qualified tax professional. :cool:

I use the hobby write off also