1099's
Posted: Fri Feb 03, 2012 4:59 pm
Why would I get a 1099 when my winnings were less than my entry fees for the same league that I had winnings in?
https://nfbcforums.sportshubtech.com/
https://nfbcforums.sportshubtech.com/viewtopic.php?f=4&t=11512
KJ, have you treated the winnings as "hobby" in the past even though you get a 1099-MISC, or do you record with other 1099-MISC with expenses being subject to the 2.5% AGI floor?KJ Duke wrote:It's required by IRS, however you can write off the full amount so it has no impact on your taxable income.
Not necessarily. Loss carryovers imply a business and I do not believe the casual participant would qualify. But that is only my opinion.Captain Hook wrote:It's easy clean and in the years where you don't win is a nice loss to take.
I've been using hobby income. I wish the IRS would clarify what income this should be in a clear and fair way, but they seem to prefer unnecessarily vague. Hobby seems defendable - not the most tax-advantaged but not the worst either.Edwards Kings wrote:KJ, have you treated the winnings as "hobby" in the past even though you get a 1099-MISC, or do you record with other 1099-MISC with expenses being subject to the 2.5% AGI floor?KJ Duke wrote:It's required by IRS, however you can write off the full amount so it has no impact on your taxable income.
Thanks!
I agree that is the proper way to do. However, as I don't itemize (take the standard deduction) the addition to "other income" for return of entry fee is the issue. I donated a "triple play live" last year along with satellites drafts and got a 1099 for leagues that returned entry or less. I am not even saying all my NFBC leagues should be combined - just that the 1099 should be "net" income for the league that pays off. The current method seems wrong to me, and the reason I am not signed up for the Main (currently) in 2012.TParsons wrote:Unless you're a professional gambler, your winnings need to be reported as "other income." Losses (entry fees) would be an itemized deduction on Schedule A.
I don't know what to say other than as game operators we report the amount you won from us and there are certainly ways to tell the government what expenses were needed on your part to earn that income. Fanball took out your entry fees from winnings, but they also did it only for that certain winning entry. I'm not sure if that's the right way or the best way or not. All I know is that what we are doing now is no different from the first 7 years we reported winnings to the government and most players in our contest knew how to itemize their expenses in accordance with the winnings. In this case, it seems like itemizing is the way to go. But if not and you're worried about paying taxes on your winnings that don't take out your entry fees, then I'm not sure what else we can do. Sorry, but I'd have to think we'll report winnings in the same manner in 2013 that we did in 2012.Head 2 Head wrote:I agree that is the proper way to do. However, as I don't itemize (take the standard deduction) the addition to "other income" for return of entry fee is the issue. I donated a "triple play live" last year along with satellites drafts and got a 1099 for leagues that returned entry or less. I am not even saying all my NFBC leagues should be combined - just that the 1099 should be "net" income for the league that pays off. The current method seems wrong to me, and the reason I am not signed up for the Main (currently) in 2012.TParsons wrote:Unless you're a professional gambler, your winnings need to be reported as "other income." Losses (entry fees) would be an itemized deduction on Schedule A.
First off - I find it interesting it took 11 days for "NFBC" to answer a "Ask the NFBC a Question".Greg Ambrosius wrote:I don't know what to say other than as game operators we report the amount you won from us and there are certainly ways to tell the government what expenses were needed on your part to earn that income. Fanball took out your entry fees from winnings, but they also did it only for that certain winning entry. I'm not sure if that's the right way or the best way or not. All I know is that what we are doing now is no different from the first 7 years we reported winnings to the government and most players in our contest knew how to itemize their expenses in accordance with the winnings. In this case, it seems like itemizing is the way to go. But if not and you're worried about paying taxes on your winnings that don't take out your entry fees, then I'm not sure what else we can do. Sorry, but I'd have to think we'll report winnings in the same manner in 2013 that we did in 2012.Head 2 Head wrote:I agree that is the proper way to do. However, as I don't itemize (take the standard deduction) the addition to "other income" for return of entry fee is the issue. I donated a "triple play live" last year along with satellites drafts and got a 1099 for leagues that returned entry or less. I am not even saying all my NFBC leagues should be combined - just that the 1099 should be "net" income for the league that pays off. The current method seems wrong to me, and the reason I am not signed up for the Main (currently) in 2012.TParsons wrote:Unless you're a professional gambler, your winnings need to be reported as "other income." Losses (entry fees) would be an itemized deduction on Schedule A.