w-9s

I'm not following what you're saying. We've cooked contests that have W-9's in the envelope. Usually have one filled out in my purse to hand over immediately and the check is mailed. What's the dealio, Bro?

They can require it for any amount, but the $600 point is where they are required to send you a tax doc at the end of the year.

It shouldn't really matter since you are reporting it on your taxes whether it is cash or check anyway, right? I mean, it would be illegal to not report earnings. You can always claim expenses to offset the winnings so you don't pay tax on it, but you have to report it either way.

Getting cash saves you the hassle of filling out the form, but it still needs to be reported.

Being self employed, I keep a signed W-9 on the computer to send out to my customers. It is necessary for payers in order for them to file a 1099 in January. It is standard practice -- just do it. It is the law, and it is incredibly easy.

You can use your costs as deductions. It's not that hard to figure out. Keep you receipts -- or not, and bitch and moan about your taxes. Seriously, it is not a big deal if you took the time to keep decent records. I do my own taxes with Turbo Tax, and I get it done in a few hours.

CD

The Quapaw deal is a casino regulation. Hope to meet you if you are going!

I agree, I'm uncomfortable handing my social over to someone that is placing it on an unknown computer.
At Ames we were asked to fill one out when we entered. No problem if you win something but to ask for it ahead of time is a bit much.

They asked for it in Marietta Ohio. When I called questioning them I was told it would be okay to fill it out on Saturday if needed.....and that the past winners had declined to turn it in early. I took that as a clue to not submit a form in advance LOL We didn't win but we didn't do too bad either.

Balls Casten said:

I agree, I'm uncomfortable handing my social over to someone that is placing it on an unknown computer.

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Me too, that is why I obtained an Employee Identification Number (EIN) from the IRS. Easy to get and free, and it eliminates the need to provide a SSN.

I'd say more that 1/2 of the events we entry have you fill one out when you arrive or before awards. We use the LLC ID number.

Ok.. what if you have a sponser who buys stuff or donates meat or something like that. You can't write that off on your taxes and some people won't give you their information for you to turn in to get that check sent to them? some of the expenses go to the competitor while others go to the sponsor. some sponsors might take up all the expenses. How do they get the check then?

My team is not a LLC or anything like that it's just a BBQ team. My ? Is can I still keep my recites and clam it as a expense? Kind of new to this. Should I keep any other records or just recites that I spend on the team?


Have fun and happy smoking
BBQ UP

tyotrain said:

My team is not a LLC or anything like that it's just a BBQ team. My ? Is can I still keep my recites and clam it as a expense? Kind of new to this. Should I keep any other records or just recites that I spend on the team?


Have fun and happy smoking
BBQ UP

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You do not have to incorporate to write off expenses as a "business." Just set yourself up as a "sole-proprietor," and keep track of your winnings and expenses. Now, if your expenses exceed your winnings for every year, it could be a red flag for the IRS. A business that loses money year after year will eventually look suspect.

CD

Im no account so easy on this advice ...
Use a credit card for you bbq expenses then should you win something big and you or your tax guy need recepts you can go back and get them.

Balls Casten said:

Im no account so easy on this advice ...
Use a credit card for you bbq expenses then should you win something big and you or your tax guy need recepts you can go back and get them.

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My ? Is do I have to set up a sole proprietorship to do that.


Have fun and happy smoking
BBQ UP

tyotrain said:

My team is not a LLC or anything like that it's just a BBQ team. My ? Is can I still keep my recites and clam it as a expense? Kind of new to this. Should I keep any other records or just recites that I spend on the team?


Have fun and happy smoking
BBQ UP

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My accountant ran all of our earnings and expenses for the past two years as a hobby. Keep all your receipts and a tally of winnings and as long as you aren't making too much you should be fine. This year everything will be ran as an LLC.

Wow.

I'm sure to take some heat for this next statement, but it's the truth....some of you don't need to be voting....you have no clue about simple tax procedures.

1. The beginning number for the requirement to issue a 1099 is $600.01. Not "$600"...

2. Most of these entities that put on contests are municipal or county governments. They are going to follow the law and they are going to make sure their accounting is as tight as possible. I don't like it any more than anyone else, but it's the current tax code. If YOU don't like it, start voting for someone other than the morons that are on the ballot in November....turn the channel from ESPN or American Idol in February and March....

3. There's probably 8-10 teams in the entire United States that will have to pay taxes on net income from BBQ contests in any given year. They'll be the top 10 teams ranked at the National BBQ Rankings. Other than that, if you do more than 2 contests a year and don't win Grand at all of them, your expenses (including mileage) is going to severely outweigh any winnings you receive. This means you won't pay taxes on any of your winnings. It's just a matter of keeping your receipts and mileage records and reporting it all. You won't even pay FICA taxes.

5. It doesn't matter you have LLC'ed up, if it is "ran as a hobby" or anything else. It's friggin' income pointed towards whoever filled out the W9 form at the contest. That particular income can have expenses charged against it. More expenses than income = $0 net income to tax against.

I'm going to bet that an organizer who has run a contest or two and needs to have W9s on hand has figured out it's easier to get them for EVERY payout than to hunt down the teams that took home more than $600.00. This way, they only issue a 1099 to the teams (person) who took home more than $600.00 and don't waste their time on the ones that finished 4th with a $200 check/cash...It's NOT required for them to report the $200 and it saves them paperwork/bookkeeping by NOT issuing you a 1099 for the $200...

I would much rather fill a W9 out if I have to. I really don't like sending them in with my contest app. for my number to be on file with the organizer. One organizer told me the reason he started requiring them prior to the contest is because he attempted to get the info after the contest by mail and the GC of the comp never returned the form.

tyotrain said:

My team is not a LLC or anything like that it's just a BBQ team. My ? Is can I still keep my recites and clam it as a expense? Kind of new to this. Should I keep any other records or just recites that I spend on the team?


Have fun and happy smoking
BBQ UP

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I am not an accountant.

You'll report any 1099 income you receive on a Schedule C form when you do your taxes. You report your gross income you received from bbq contests, regardless of if you received a 1099 for it or not. You also report all of your bbq expenses you incurred on the same 1099 form. Unless bbq is your primary business, you can only offset up to the amount of income you received from contests with the bbq expenses you incurred. In other words, if you won $3000 in prize money for the year, you can only offset that income with up to $3000 in bbq expenses.

There are IRS guidelines that determine whether your hobby is actually a business or not which can have further tax implications. When in doubt, consult a CPA.

...I am not an accountant.

Pack-A-Smokes said:

I would much rather fill a W9 out if I have to. I really don't like sending them in with my contest app. for my number to be on file with the organizer. One organizer told me the reason he started requiring them prior to the contest is because he attempted to get the info after the contest by mail and the GC of the comp never returned the form.

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I'm sure that's why they ask for them up front. Some of my new customers over the years would not mail my first payment until they had a W-9 on file, even if the amount of the first invoice was less than $600 (okay, $601). The $601 minimum is not per invoice, it is for the year, so they want the W-9 on file from the start.

It seems like organizers could just hold onto checks until a W-9 is turned into them, and not make everyone turn one in, up front. But, I'm sure the easiest thing for the organizer to do is get one from everyone up front.

CD