Discussion:SPORTS REFEREE

full time job in his state of residence and goes to five other states each year to referee basketball games. Are there any state tax implications in the other states? Will these states want my client to pay state income tax where the games are played?

Don't believe that, in terms of possible filing requirements, it makes any difference at all whether W-2 or 1099.

I have a few new clients this year that received 1099's box 7 for refereeing at various little league sports. They all have regular jobs and they also have SE income from a real estate company. Do you have do a schedule C for the refereeing or take it to line 21 other income?

Tom

The refs I refer to do VERY well. One in excess of 100K gross. This is big business and a few of them each year can get to the NBA where they are paid on a W2, pension etc... but at the NCAA level, some refs doing the BIG games earn upwards of 150K and more when camps etc... are included.

I understand these refs do very well. When I had my hip replaced, I met an NBA ref (no, not that one) who said that when he started out doing rec leagues and worked his way up he never imagined making the type of money he does now.

OT - Soccer is a different issue. The referees you see doing the World Cup and international matches all have day jobs as the income they make will not sustain them. But I do hear that there is a movement to have "dedicated professional" soccer referees and the US Soccer Federation hired it's first "full-time" referees a little over a year ago.

Our organization is paid by the leagues. We do have some cash games as that's what referees would prefer, but the leagues keep track of those games. When I started the organization and I was the first treasurer, I had strict policy to report cash games to the referees. You should have heard the complaints. "That's cash money (which is the equivalent of saying 'hot water heater') nobody reports those games." I told them take it up with the IRS as I wasn't about to risk my license for them. Eventually, it became standard procedure, the refs stopped complaining and while I am no longer treasurer, the organization still does it.

Tom

Funny thing, I have a minor league hockey ref as a client. He gets a W2. The W2 is taxed to the state where the league is headquartered. He is NEVER in that state and he refs in about 5 different states. I don't make waves, I sinply have the earnings taxed to the W2 state as the earnings are about 20K. What we are saying is that the business is sort of "unorganized" and in need of some refereeing from a compliance standard.

He had an unfortunate medical event that left him blind in one eye, but the organizations he works for are insisting that he continue his referee work regardless.

Just amusing ....

So, point is, there are expenses and it's a paid hobby for most of us but it isn't volunteer work as was pointed out above. Volunteers don't get paid anything (i did that for several years as I learned how to reduce the amount I get screamed at.)

I've been chased to my car, threatened, spit at, called every name in the book, etc.

You're kidding yourself if you don't think I won't take advantage of the tax breaks by deducting my costs for everything I put up with during a season.

Tom

Couldn't agree more...I officially (no pun intended) resigned from my association at the end of the baseball season. Just not worth the hassle nor the time required especially now that gas is $4+/gal. Let's see, drive an hour to the park so as to be there at least 30 minutes prior, do the game and drive home. Time spent about 5 hours. 5-6 gals of gas in my Rodeo for the 120 mile round trip...all for $65 game/travel fee. 5 hours at my standard rate is about $700. hmmmm.

I used to blame the enjoyment of it...recently I came to realize that it was mere insanity to continue.

I'll have to admit that I haven't been chased to a car or spit upon...I probably just didn't do it long enough.

What a revolution in tax simplification that would be!

Totally think that would be a great idea. When I was at PWC back in the early 90's, I worked in OHIO for about 3 weeks and I received a W2 for OHIO. Ridiculous. But how would that solve your sliding egg problem?

I would be nice if this is passed. But your post is the first I heard about it. So obviously, it has about has much chance of passing as legislation naming a post office after me.

Not to thread drift too far, but, Nole, it's funny, soccer seems to evoke a different passion here because people don't understand the game or know the rules. One of the funniest/worst incidents I witnessed involved a mother going after a kid who fouled her son. I was right there and couldn't believe it. She's screaming at the kid and about to hit him. I stop her. All heck breaks loose. Next thing I know, mom is flat on her fanny and I see a little gray haired man ducking back into the crowd. It's the other kids grandfather. I laugh my head off. We terminate the game and about 15 minutes later, the police come over and ask who saw the incident as the mom wants to lock the grandfather up for assaulting her. I tell the police what I know, they laugh, walk away and tell her they aren't going to arrest him but her for assault on the kid if she decides to press charges on the grandfather. She says forget it.

So it's no wonder I won't take my deductions for all the stuff I've seen, done and everything else. It's only right.

Tom