Question Number: 18191

Other 1/1/2008

RE: Competetive Other

Tim of Galway, NY USA asks...

My question has to do with taxes. I plan on doing a lot more games this year and I believe that I will make enough where I will have to pay taxes next year.

Since most of my previous jobs have taken care of taxes for me, I'm unfamiliar with keeping track of everything myself. I was wondering if you knew of any resources that might be able to help and would be more specific for someone like a sports official.

I was also wondering if you were familiar with tax deductions related to being a referee. I've heard that you could deduct uniform costs and laundry costs, but I wasn't sure if things such as gym membership fees (since I want to become more serious about my fitness) would also be covered.

Being a college kid, it can be frustrating when I have to spend money on something like a new pair of turfs, and it would be a big relief to know that I could at least see some of that money come back the following year.

Thanks for your help!

Answer provided by Referee Steve Montanino

Tim,

My answer to you is going to be un-official and is based on my prior experiences with tax filing for referee related income. You should be keeping accurate records of all of your refereed matches and the amount you earned for refereeing them. You are required by both Federal and State laws to declare this income on your tax return. In the same vein, you are entitled to deduct all legitimate business related expenses related to refereeing, and while a recipt isn't always necessary it will be required if you are audited. You may deduct as much as you have earned (and possibly more, depending on some circumstances*). Careful though not to deduct the same amount that you've made or more repeatedly or else your business status will change to "hobby" by the IRS which will significantly reduce what deductions you can claim related to refereeing in the future. A business should indeed always make money or else the IRS will not want to let you claim as much of the losses back.

So keep track of your miles traveled, keep track of the amount of money you made, and keep track of food you bought going to or from the game, water, referee gear, gas, or anything else that you spend money on in order to referee. Try to keep receipts and don't break any laws!


*Please check with your accountant or tax-lawyer to ensure the accuracy of these statements.

Answer provided by Referee Chuck Fleischer

What you will file is a schedule C. Your refereeing is a small business and needs to be addressed as such. The best thing you can do is put a log book in your car and each time you go to a match record the mileage starting and ending. Therein you will enumerate all fees and expenses associated with the matches each day. Some fees are hidden in cleaning of your uniform, license fees, costs of attending training, Internet fees if you are assigned on line. Some are more open, boots, uniform shirts and trousers, stockings, rain gear -- these things have only one use and that is in the business of being a Football Referee. Keep receipts no matter what anyone recommends and claim nothing you don't have records of, nothing. Report ALL monies received and gifts given as they are income as well. That "T" shirt, a meal, snacks -- income because you don't have to spend your match fees on those things.

Keep records, keep receipts, keep a log book for the car, keep records!! And while you're at it keep a record of each match, where, when, what position, who the other referees were, the teams, the league, the level of competition -- because if you are a success there will be a time you must prove your game count.

Be prepared to make little money, work your arse off and get tired and sore.

Regards,

The following questions were asked as a follow up to the above question...

See Question: 18410