In past years, when I won money for my regular season auction record and for my finish in the playoffs, they were counted in separate tax years. Is this still the case? I won a total of $1375 for best record and third place in the playoffs in the 2009 NFFC auction league. I received my check but there was nothing accompanying it to indicate if the separate amounts of $650 and $725 were both for 2009, both for 2010, or for separate years.
Cheetah
W9 Forms Needed For All Prize Winners
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Ted's Cracked Head
- Posts: 2817
- Joined: Sun Aug 28, 2005 6:00 pm
W9 Forms Needed For All Prize Winners
If you pay 1300 to play and win 650, you pay no taxes because you did not earn more than you had invested.
As far as which year you claim winnings? I think this depends on when you were paid. If they cut all checks in 2010 for the 2009 season, you won money in 2010. That is how my accountant directed me to proceed.
For those that did receive checks recently for the 2009 season, save all your receipts over the next 11 months as they will count against your earnings. (including 2010 entry fees, travel costs, internet, Directv with NFL Package, etc...) You can write off any losing lottery tickets (as stated above) and OTB losing tickets too. So get to the track and grab some. I would suggest grabbing a racing form while you were there to offer proof that you made the wagers. It's probably a good idea to select losing tickets that are within your normal betting pattern.
I keep an envelope for each month and total them as the year goes on to make it easier come tax time. It doesn't take much effort to do and saves on time each April.
As far as which year you claim winnings? I think this depends on when you were paid. If they cut all checks in 2010 for the 2009 season, you won money in 2010. That is how my accountant directed me to proceed.
For those that did receive checks recently for the 2009 season, save all your receipts over the next 11 months as they will count against your earnings. (including 2010 entry fees, travel costs, internet, Directv with NFL Package, etc...) You can write off any losing lottery tickets (as stated above) and OTB losing tickets too. So get to the track and grab some. I would suggest grabbing a racing form while you were there to offer proof that you made the wagers. It's probably a good idea to select losing tickets that are within your normal betting pattern.
I keep an envelope for each month and total them as the year goes on to make it easier come tax time. It doesn't take much effort to do and saves on time each April.
My mama says she loves me but she could be jiving too! BB King
W9 Forms Needed For All Prize Winners
Thanks, Rob. I was just wondering if the NFFC notified the IRS of the win for 2009 tax purposes. If not, then I agree with you that it should go with the 2010 winnings.
Cheetah
Cheetah
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Old School
- Posts: 1084
- Joined: Sun Aug 10, 2008 6:00 pm
W9 Forms Needed For All Prize Winners
This is 2 different animals folks.
Fantasy football is NOT gambling income. If it was considered gambling income, you would receive a W-2g form. Therefore, your gambling losses have nothing to do with fantasy football. Gambling losses can offset gambling income somewhat on your schedule A of you taxes.
Filling out a W-9 does not automatically inform the IRS that you have football winnings. This only happens if the payer sends out a 1099 form. If you receive one, you must report the winnings either as other income, less expenses, or as a full blown schedule C business where you can deduct related expenses. Be aware that this form, while opening up a multitude of expenses, is a high scrutiny item with the IRS that causes many audits. So be sure to know what expenses you can deduct.
You can certainly try to deduct things like NFL ticket, Cable, internet etc. If you were audited, a sharp auditor would disallow these items. The rule of a valid expense is if the primary purpose of the expense is for personal use or enjoyment it is not deductible, even if it has a value for the fantasy football. Make sure to tell the auditor you "hate watching football-you just do it for business purposes"
Like Snake says, "Get a good taxman to help you". It's a very grey area.
I knew someday this CPA gig I have would come in handy!
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"Let me tell you how it will be, there's one for you nineteen for me...cause I'm the Taxman"
Beatles
Fantasy football is NOT gambling income. If it was considered gambling income, you would receive a W-2g form. Therefore, your gambling losses have nothing to do with fantasy football. Gambling losses can offset gambling income somewhat on your schedule A of you taxes.
Filling out a W-9 does not automatically inform the IRS that you have football winnings. This only happens if the payer sends out a 1099 form. If you receive one, you must report the winnings either as other income, less expenses, or as a full blown schedule C business where you can deduct related expenses. Be aware that this form, while opening up a multitude of expenses, is a high scrutiny item with the IRS that causes many audits. So be sure to know what expenses you can deduct.
You can certainly try to deduct things like NFL ticket, Cable, internet etc. If you were audited, a sharp auditor would disallow these items. The rule of a valid expense is if the primary purpose of the expense is for personal use or enjoyment it is not deductible, even if it has a value for the fantasy football. Make sure to tell the auditor you "hate watching football-you just do it for business purposes"
Like Snake says, "Get a good taxman to help you". It's a very grey area.
I knew someday this CPA gig I have would come in handy!
------------------
"Let me tell you how it will be, there's one for you nineteen for me...cause I'm the Taxman"
Beatles
W9 Forms Needed For All Prize Winners
Thanks for the tax info. I have heard many accountants agree with what you said, but I have heard others interpret it to mean that all this stuff is still gambling winnings. Regardless of that interpretation, I'll need to know whether to count these "earnings" for 2009 or 2010. I have not gotten a 1099 form for 2009 from the NFFC.
Cheetah
Cheetah