NFBC Prize Payment Update and Timeline

[rkulaski]

Originally posted by Tax Man:

And this right from the fanball website:



Q: How do I report my winnings on my taxes?

A: For customers who receive $600 or more in a calendar year, Fanball is required to file a form 1099 with the IRS by February 28th following the tax year. A copy of the 1099 also will be supplied to the prize winner to aid in tax preparation. The prize winnings are accumulated for all prizes awarded during the tax year and are totaled regardless of whether or not the prize money was placed on a Fanball account or issued as a check. [/QB]So the way I interpret this is that once the winnings are placed into our fanball account, this is taxable income whether or not we actually withdraw from our fanball accounts or leave it there.



Did someone say in a previous post that if we use some of that money from our fanball account and place it back into another fantasy game/league , that we don't have to report that as income? I would think we would.

[Gekko]

Originally posted by rkulaski:



Did someone say in a previous post that if we use some of that money from our fanball account and place it back into another fantasy game/league , that we don't have to report that as income? I would think we would. i wouldn't rely on ANYONE'S words here (including mine). as always, consult your accountant.

[Gekko]

Originally posted by Greg Ambrosius:



I don't know how quickly checks will be issued after prizes have been claimed, but I'll ask Ryan for an update and post here when I know. let's not lose sight of the purpose of the thread.

[mallorys killers]

If you won $2,000 and you lost $2,000 entry fees gambling etc I think your accountant can write off the losses against your winnings and you have zero tax liability. Now for the top winners that's a different story unless they lost a lot in vegas atlantic city and the track.

[rkulaski]

Originally posted by mallorys killers:

If you won $2,000 and you lost $2,000 entry fees gambling etc I think your accountant can write off the losses against your winnings and you have zero tax liability. Now for the top winners that's a different story unless they lost a lot in vegas atlantic city and the track. yes that's what i did last year (wrote off the losses). thanks.

[CC's Desperados]

Originally posted by mallorys killers:

If you won $2,000 and you lost $2,000 entry fees gambling etc I think your accountant can write off the losses against your winnings and you have zero tax liability. Now for the top winners that's a different story unless they lost a lot in vegas atlantic city and the track. You can't write off gambling losses for fantasy sports winnings. You are asking for an audit.

[slopshot]

What about entry fees can they be deducted?

[rkulaski]

Originally posted by CC's Desperados:

quote:Originally posted by mallorys killers:

If you won $2,000 and you lost $2,000 entry fees gambling etc I think your accountant can write off the losses against your winnings and you have zero tax liability. Now for the top winners that's a different story unless they lost a lot in vegas atlantic city and the track. You can't write off gambling losses for fantasy sports winnings. You are asking for an audit. [/QUOTE]Not quite. I probably shouldn't have said "losses." I'd have to go back and look at how I did it in TurboTax but I still think you can deduct your entry fees from your winnings... you've already been taxed on your entry fees once (as part of your original taxable income) so it makes sense that you can deduct it from your winnings.



[ October 17, 2010, 10:37 PM: Message edited by: rkulaski ]

[Glenneration X]

A 1099 means it's treated as self-employment income. This means you can deduct anything it cost you to play. Entry fees, travel costs, hotel costs, websites, etc. should all be allowable deductions.



In regards to the Taxman's post, what Fanball notes in its rules doesn't necessarily make it tax law. I still have trouble believing you can be taxed on something you've yet to receive.



Glenn

[viper]

Not exactly self-employment income. Self-employment income is subject to self-employment tax and I doubt if anyone does that. Some where on page one of the return is where your 1099 income is placed.



You can deduct your expenses up to the amount of your winnings. If you won $2000 you can deduct as much as $2000 in expenses. Just make sure you keep receipts. The expenses are deductible in Schedule A. Remember, you must claim all the income but you can only deduct the expenses to to extent of you income.



I would bet that Shawn, Mark and several others have contacted tax lawyers and do things slightly different. Personally, I don't make all that much so it isn't an issue and I work for a tax lawyer.

[DOUGHBOYS]

Originally posted by Glenneration X:

A 1099 means it's treated as self-employment income. This means you can deduct anything it cost you to play. Entry fees, travel costs, hotel costs, websites, etc. should all be allowable deductions.



In regards to the Taxman's post, what Fanball notes in its rules doesn't necessarily make it tax law. I still have trouble believing you can be taxed on something you've yet to receive.



Glenn It has been a kick for me reading this thread.

A little like a few friends and I discussing how to remove a bullet.

Glenn, if we went with your above premise, can my grandma, an avid lotto player, deduct the gas to go down to the convenience store and the wear and tear on her car, and 'The National Enquirer' who provides some 'lucky numbers'?

[DiamondKing]

Year before last I used my expences against my winnings.It did create a little fuss.IRS held part of my refund untill I sent in credit card bills for hotel,airfare,events etc.Then they sent the rest of the refund.It did hold everything up by about 8 months.

[Glenneration X]

Originally posted by DiamondKing:

Year before last I used my expences against my winnings.It did create a little fuss.IRS held part of my refund untill I sent in credit card bills for hotel,airfare,events etc.Then they sent the rest of the refund.It did hold everything up by about 8 months. Better to wait the 8 months and actually get the deduction than to pay full price up front and just let the IRS keep money that is rightfully yours. These are totally legit writeoffs.



...and Dan, while I'm not sure about the gas or wear & tear on the car for Granny, the National Enquirer is a no-brainer writeoff.



Glenn

[whipsaw]

Good lord this thread is a massive collection of fail. I might have to write something longer later, but I have to try and clear up this whole "when I receive the check" debacle because it's making my head hurt reading the misinformation. The income is yours when you earn it, and is taxable as such. You earned your income when the fantasy results became official. If the check doesn't come until January 4, then too bad. It's still 2010 income.



Try this analogy on for size. Does your boss walk in to your office on December 31, at close of business, and hand you a check/wad of cash/stack of Trident Layers gum for all the money you made from your previous paycheck to the end of the year? No. Most people are paid a week or more after the work has been done. The fact that you receive a check on January 7 for work that was done from December 16-30 doesn't change the fact that that income is 2010 income, is on your W-2 form, and must be reported on your 2010 form. What matters is when the income is earned.

[Tax Man]

Originally posted by Glenneration X:

A 1099 means it's treated as self-employment income. This means you can deduct anything it cost you to play. Entry fees, travel costs, hotel costs, websites, etc. should all be allowable deductions.



In regards to the Taxman's post, what Fanball notes in its rules doesn't necessarily make it tax law. I still have trouble believing you can be taxed on something you've yet to receive.



Glenn The first part is from the tax law - only the 2nd was fanball. Also just because you receive a 1099 it doesnt make it self-employment income. You are not running a business as a fantasy sports player (unless you really are). There are a whole bunch of hobby rules which allow you to deduct hobby expenses on Sch A subject to 2% not net against winnings. Its way too long to get into.



In summation - you can deduct ANYTHING on your tax return. Doesnt mean its correct, doesnt mean you will get audited. Audits are luck of the draw.

[Tax Man]

Originally posted by whipsaw:

Good lord this thread is a massive collection of fail. I might have to write something longer later, but I have to try and clear up this whole "when I receive the check" debacle because it's making my head hurt reading the misinformation. The income is yours when you earn it, and is taxable as such. You earned your income when the fantasy results became official. If the check doesn't come until January 4, then too bad. It's still 2010 income.



Try this analogy on for size. Does your boss walk in to your office on December 31, at close of business, and hand you a check/wad of cash/stack of Trident Layers gum for all the money you made from your previous paycheck to the end of the year? No. Most people are paid a week or more after the work has been done. The fact that you receive a check on January 7 for work that was done from December 16-30 doesn't change the fact that that income is 2010 income, is on your W-2 form, and must be reported on your 2010 form. What matters is when the income is earned. not sure what you are saying - you get paid 1/7/11 for the week ended 12/31/10. For payroll that $ is included in your 2011 W-2 not 2010.

[Chest Rockwell]

Originally posted by whipsaw:

Good lord this thread is a massive collection of fail. I might have to write something longer later, but I have to try and clear up this whole "when I receive the check" debacle because it's making my head hurt reading the misinformation. The income is yours when you earn it, and is taxable as such. You earned your income when the fantasy results became official. If the check doesn't come until January 4, then too bad. It's still 2010 income.



Try this analogy on for size. Does your boss walk in to your office on December 31, at close of business, and hand you a check/wad of cash/stack of Trident Layers gum for all the money you made from your previous paycheck to the end of the year? No. Most people are paid a week or more after the work has been done. The fact that you receive a check on January 7 for work that was done from December 16-30 doesn't change the fact that that income is 2010 income, is on your W-2 form, and must be reported on your 2010 form. What matters is when the income is earned. Fire your tax accountant now- you will never regret it

[Glenneration X]

Originally posted by whipsaw:

Good lord this thread is a massive collection of fail. I might have to write something longer later, but I have to try and clear up this whole "when I receive the check" debacle because it's making my head hurt reading the misinformation. The income is yours when you earn it, and is taxable as such. You earned your income when the fantasy results became official. If the check doesn't come until January 4, then too bad. It's still 2010 income.



Try this analogy on for size. Does your boss walk in to your office on December 31, at close of business, and hand you a check/wad of cash/stack of Trident Layers gum for all the money you made from your previous paycheck to the end of the year? No. Most people are paid a week or more after the work has been done. The fact that you receive a check on January 7 for work that was done from December 16-30 doesn't change the fact that that income is 2010 income, is on your W-2 form, and must be reported on your 2010 form. What matters is when the income is earned. Ummmm....and you're complaining about misinformation?!? :rolleyes:



Glenn



[ October 19, 2010, 12:28 PM: Message edited by: Glenneration X ]

[whipsaw]

You're right, I'm an idiot. Nothing new to see.

[Chest Rockwell]

Originally posted by whipsaw:

You're right, I'm an idiot. Nothing new to see. We have all been there just usually our wife on the other end of the conversation so feel fortunate.

[Gekko]

Originally posted by whipsaw:

Good lord this thread is a massive collection of fail. I might have to write something longer later, but I have to try and clear up this whole "when I receive the check" debacle because it's making my head hurt reading the misinformation. The income is yours when you earn it, and is taxable as such. You earned your income when the fantasy results became official. If the check doesn't come until January 4, then too bad. It's still 2010 income.



Try this analogy on for size. Does your boss walk in to your office on December 31, at close of business, and hand you a check/wad of cash/stack of Trident Layers gum for all the money you made from your previous paycheck to the end of the year? No. Most people are paid a week or more after the work has been done. The fact that you receive a check on January 7 for work that was done from December 16-30 doesn't change the fact that that income is 2010 income, is on your W-2 form, and must be reported on your 2010 form. What matters is when the income is earned. it would be interesting to watch you discuss this with the IRS!

[Richie]

This is definite. If the check is cut on 1/1/11, it is taxed in 2011. You could have earned it in 2007, does not matter. When was it paid?



Can you imagine earning something in 2007, say 50 grand, but you get it in 2011 by contract. lets say. (some ball players have deferred payment contracts) That would be quite a burden to lay out 20 grand to the IRS, a few years before you receive that money.

[moose1squirrel2]

Just to keep things flowing toward an end--received prize check today from Real Time Fantasy Sports for baseball

[DOUGHBOYS]

At the risk of ruining a perfectly good humorous thread comprised of a few, who obviously slept at a Holiday Inn...an opinion.



The checks should at least be in the mail by now.

Companies cut thousands of checks every two weeks in America. It should be no different here.

Computers are wonders, I don't know how they work, but I am betting they know the amount of money everyone made within a day after the season, if not hours. Including the other segments of Fanball competition.



I may sound a little Sportsbettingmanian, but I suspect it becomes a game of how many days the parent company can hang onto millions of dollars gaining interest before customer resentment gets to the breaking point.



It should be interesting to see how this is handled, and more important, WHEN it is handled.

[Gekko]

Originally posted by moose1squirrel2:

Just to keep things flowing toward an end--received prize check today from Real Time Fantasy Sports for baseball any idea how many leagues they had to cut checks for?