1099 tax help!

[customfishn]

Ok Im sick and tired of all the 1099's  some one needs to help me from paying all the taxes on my winnings from the 2011 year!  My wife keeps getting 1099's in the mail and yelling at me, year after year.  I hear there are ways to offset them, so if some one knows let me in on the secret.

[LGMOUTH]

Receipts, Receipts, Receipts. Hit me up with a PM and I will give you all the details. Been doing it for years and years.

[Durand Dan]

Did you recieve a 1009-MISC? If so the following rules apply

You may treat income reported on a 1099-MISC as hobby income, if it is reported in box 3 OR if you don't have a profit motive in earning this income. You may claim losses but only up to the reported hobby income. Hobby losses are deductible as miscellaneous itemized deductions on Schedule A. You must itemize your deductions and your total miscellaneous expenses must exceed 2% of your adjusted gross income to be deductible. Otherwise you will take the Standard Deduction

[Waterfoul]

Anyone know if Turbotax will do all the calculations for you on something like this?  I too need to itemize my " hobby" expenses this year.

customfishn... if you have a big issue with it... just don't win any tournaments.

[djkimmel]

Ok Im sick and tired of all the 1099's  some one needs to help me from paying all the taxes on my winnings from the 2011 year!  My wife keeps getting 1099's in the mail and yelling at me, year after year.  I hear there are ways to offset them, so if some one knows let me in on the secret.

If you would prefer to just reward all your winnings to me, I will take the hassle off your hand!! I'd contact LGMOUTH. I bet he has a handle on this. Hopefully his 'fee' is waived for you!

Along with receipts, keep your mileage for each time you go practice or fish a tournament. You should keep a mileage list of date, reason, start and finish mileage and then the number of miles you drove. That shows a good record-keeping pattern that demonstrates and documents your seriousness.

[LGMOUTH]

Exactly what Dan said.

[motocross269]

The best way to handle 1099s is to start an LLC.....You can only do so much with hobby income and it throws up a red flag to the IRS big time......
LLCs can be tricky also.....You can only show losses for so long....

Unless you are looking at 5 figures or more of income I don't know if I would bother with it....Depending on your AGI.....I won around 5k a couple of years ago and I just bit the bullet because I knew I wasn't going to make a career out of this...The hassle outweighed the profits...My AGI was high enough that I had to have a substantial amount of deductions to claim the losses...

Waterfoul, I would be careful trying to deduct too much "Hobby expense"....JMHO

Turbo Tax does have a small business program...

[bigjc]

Might be easier to just start taking 10 or 20 percent out of your tx winnings at the time of cashing the check, and set it aside.

[Genie]

Genielogs.com will track all that for you ....

[Skulley]

Genielogs.com will track all that for you ....

And that's why you're the Genie.   


BD                           

[customfishn]

Ok a lot of this stuff is over my head but I get it, receipts seem to be important.  I have kept some,  Can you get receipts from tournament trails for entry fees?  I will probably have to just bite the bullet but I have 4700$ in 1099s for the year (that the IRS knows about)  kidding,  kind of.  It would have been more but thanks to LGMOUTH its not.  He sure is a nice guy for saving me money at the end of the year.

[djkimmel]

Yes he is! You've got to start keeping receipts. You can probably print some online records of weigh ins where you are listed maybe. Put the date and time and website address on them. That might help document. Keeping a log in your calendar with your mileage would also be additional record keeping.

If you can figure out how to catch bass you can figure out how to do this!