Any Umpire pay and the IRS

[The Crimedog]

So here in NY at least, I've heard that umping is considered "volunteer" work and is tax free money.

Is this true around the country? I might have to stop playing and start umping 3 days a week. 1 game = $40. Most leagues are DH around here. If you work 2 DH in a day, $40x4= 160. Umps get paid once a month from the Association here. $160x4= $640.

Tax Free.

 

[Gulf Coast Blue]

So here in NY at least, I've heard that umping is considered "volunteer" work and is tax free money.

Is this true around the country? I might have to stop playing and start umping 3 days a week. 1 game = $40. Most leagues are DH around here. If you work 2 DH in a day, $40x4= 160. Umps get paid once a month from the Association here. $160x4= $640.

Tax Free.

No.....it is not tax free. You need include any income on your tax statements. But you may also deduct mileage, uniform costs or any other expenses related to your umpiring.

Joel

 

[Gamble]

They could also just do what millions of Americans do every year -- not report it.

If they're paid in cash and directly (no accounting or payroll involved) the chances of being looked up for it are slim. Kinda like cashing out at the casino -- you can pull $20k out of a casino on a yearly basis and get by without paying taxes on it so long as your individual cashout amounts aren't enough to require reporting. Have a single $10k session, though, and you're gonna get looked at pretty quickly, though.

 

[The Crimedog]

They could also just do what millions of Americans do every year -- not report it.

If they're paid in cash and directly (no accounting or payroll involved) the chances of being looked up for it are slim. Kinda like cashing out at the casino -- you can pull $20k out of a casino on a yearly basis and get by without paying taxes on it so long as your individual cashout amounts aren't enough to require reporting. Have a single $10k session, though, and you're gonna get looked at pretty quickly, though.

I know in leagues where we pay the umps, that's obviously cash. I know I heard the phrase "paid in cash" for the local ASA but I don't know if they literally mean cash. Either way, it's one hell of a second job.

 

[Gulf Coast Blue]

Yeah but.......It is only right to pay taxes on it as it is income.

Joel

 

[irishmafia]

I know in leagues where we pay the umps, that's obviously cash. I know I heard the phrase "paid in cash" for the local ASA but I don't know if they literally mean cash. Either way, it's one hell of a second job.

It doesn't make any difference, it's ****ing income. What's so hard here?

Anyone who ever tells you there is "free money" is either an idiot or scofflaw, take your pick.

 

[Gulf Coast Blue]

They could also just do what millions of Americans do every year -- not report it.

If they're paid in cash and directly (no accounting or payroll involved) the chances of being looked up for it are slim. Kinda like cashing out at the casino -- you can pull $20k out of a casino on a yearly basis and get by without paying taxes on it so long as your individual cashout amounts aren't enough to require reporting. Have a single $10k session, though, and you're gonna get looked at pretty quickly, though.

I know in leagues where we pay the umps, that's obviously cash. I know I heard the phrase "paid in cash" for the local ASA but I don't know if they literally mean cash. Either way, it's one hell of a second job.

I understand the appeal of doing what "Millions of Americans" do, but it is only right to pay for the income brought in.

As I mentioned, there are expenses that can be used to lessen the amount of income claimed.

Same as gambling income......daily losses can always be claimed against winnings.

I don't particularly care to pay taxes myself.......but it is the law and the right thing to do.

Joel

 

[Stump]

I think you don't have to claim it until you reach $600 from a single source (i.e. league or school) We have several umps in the area that will work up to $599, then they are done.

 

[Gulf Coast Blue]

I think you don't have to claim it until you reach $600 from a single source (i.e. league or school) We have several umps in the area that will work up to $599, then they are done.

I think a 1099 does not have to be generated until the income reaches $600, but that does not mean that the other $599 is tax free.

I am not a tax guy........that is why I have someone else handle my income taxes for me.

I do some accounting/billing work for a small electric sales group in Texas......but anything to do with taxes, I leave to the true experts.

Joel

 

[eddieq]

We used to have the same arguments when I was a waiter. All of the other servers would insist that you only needed to report 8% of your sales as tip income. The rest is "free money". What they were confusing was that the 8% number was the threshold that the company was required to report to the IRS. Basically, when we clocked out, we put in how much tip money we received. If that number was under 8% of your sales, the company would report it to the IRS. We were required by law to report every cent of our tip income, though. In the long run, I found it easier to just put in what I walked with at the end of the night rather than sitting there calculating my percentages.

 

[Gulf Coast Blue]

We used to have the same arguments when I was a waiter. All of the other servers would insist that you only needed to report 8% of your sales as tip income. The rest is "free money". What they were confusing was that the 8% number was the threshold that the company was required to report to the IRS. Basically, when we clocked out, we put in how much tip money we received. If that number was under 8% of your sales, the company would report it to the IRS. We were required by law to report every cent of our tip income, though. In the long run, I found it easier to just put in what I walked with at the end of the night rather than sitting there calculating my percentages.

All three of my daughters started working at 15 in the restaurant industry.........

My middle daughter has been audited twice and had such an incredible tip journal.......they left her alone.....

I am 52 and have never been audited......but my 23 year old has been audited twice....god bless america........

Joel

 

[irishmafia]

We used to have the same arguments when I was a waiter. All of the other servers would insist that you only needed to report 8% of your sales as tip income. The rest is "free money". What they were confusing was that the 8% number was the threshold that the company was required to report to the IRS. Basically, when we clocked out, we put in how much tip money we received. If that number was under 8% of your sales, the company would report it to the IRS. We were required by law to report every cent of our tip income, though. In the long run, I found it easier to just put in what I walked with at the end of the night rather than sitting there calculating my percentages.

I was in the business when the IRS changed the rules. The problem was that there was no reason for that number and they admitted that. Some waitresses, mostly in older diners and such, didn't make 8% of the check and ended up going home with $0.00 paychecks.

What many believed was that this new rule was a blanket accusation that everyone in the food service industry was a liar and cheat. So not to disappoint them, eventually people just claimed the 8% since it was virtually impossible to prove otherwise (at that time). I have little doubt the IRS actually lost reported revenue at that point since most of the folks (at least in my area) reported most, if not all, income which was often much more than 8% if they were good.

 

[Fin09]

So volunteers in NY get paid? Hmmm, go figure.

 

[Dakota Deerwood]

All tournament ball is paid via cash down here... Our local league submits a 1099, so I stopped umpiring for those guys.... @ $16/game with a 22 mile ride each way (4 games/night)... it really is not worth it..

 

[spos21ram]

It's not tax free, but no one claims what they make around here. There's no way the IRS can find out.

 

[Kabbie]

if you get a 1099 you claim it on your taxes...

 

[IKnowNothing]

As others have said, all income should be reported. The Internal Revenue Code defines gross income as all income from whatever source derived. Of course, you can offset income with valid business deductions.

I commend anyone who reports income that would be so easy to skate by the IRS with almost a zero chance of being audited. It really is the right thing to do. The IRS loses billions upon billions of dollars a year in unreported income. The excuse of "I pay my fair share - I don't need to report this" falls on deaf ears. If you don't like the rules, leave and go find somewhere better to live.

Of course, most states also have a line on their state income tax return for people to report purchases made online on which they paid no sales tax (e.g., to pay use tax). That is another way people blatantly avoid paying their fair share.

 

[THEMshirts]

I refereed volleyball for the City and County for years. I got a check every two weeks like the govt. employees, taxes were taken out. It's the same for basketball, football, baseball and softball. A lot of the private parks pay cash, and I know of no one that claims it as income. Personally I thought most the umpires did so to payoff their bar tabs, but I could be wrong.

 

[MDUmp]

All tournament ball is paid via cash down here... Our local league submits a 1099, so I stopped umpiring for those guys.... @ $16/game with a 22 mile ride each way (4 games/night)... it really is not worth it..

You realize you can claim the 44 mile (round-trip) ride, right?

 

[Gulf Coast Blue]

You realize you can claim the 44 mile (round-trip) ride, right?

Yep.....and that is a $24.20 expense.

Joel

 

[irishmafia]

You realize you can claim the 44 mile (round-trip) ride, right?

Well, that depends. You can deduct mileage if it is between two jobs and only the difference between what your commute directly to your home would be. IOW, if you had a 10 mile commute, you could claim 34 miles per event....well, you can claim it, but it is possible a portion may be disallowed if audited.

 

[irishmafia]

It's not tax free, but no one claims what they make around here. There's no way the IRS can find out.

Actually, it is quite easy for the IRS to find it. And all it takes is one person in your official association to have a regular audit and have an agent ask about the additional income and boom, your association, the league and everyone else becomes a target and I guarantee, the league and association are going to give up every record the have.

Seen it happen, which is why I claim everything and right of everything I can. It just isn't worth the trouble of dealing with something like this.

 

[synergy40]

It's not tax free, but no one claims what they make around here. There's no way the IRS can find out.

C'mon guy you dont think they have records of every game each umpire has done. It's a business they don't just write them down on a napkin and throw them out. If they are audited you are damn right the IRS will find out every dollar you made.

 

[spos21ram]

C'mon guy you dont think they have records of every game each umpire has done. It's a business they don't just write them down on a napkin and throw them out. If they are audited you are damn right the IRS will find out every dollar you made.

How would they know? I pay the umpires in cash and get paid in cash? Who is they? I'm not saying they can't find out, but why would the IRS bother with someone over a few hundred dollars?

 

[synergy40]

How would they know? I pay the umpires in cash and get paid in cash? Who is they? I'm not saying they can't find out, but why would the IRS bother with someone over a few hundred dollars?

It's not tax free, but no one claims what they make around here. There's no way the IRS can find out.

They is the IRS and you said it in your first post there's no way the IRS can find out. Ijs

 

[synergy40]

Maybe the company up by you doesn't keep track off the umps games. On LI we have 150 umps that do the whole island and take in 500k on field money, yes the guy who runs it makes money therefore the IRS knows what he's doing. Eastcoastumpireassociation I believe.

 

[IKnowNothing]

How would they know? I pay the umpires in cash and get paid in cash? Who is they? I'm not saying they can't find out, but why would the IRS bother with someone over a few hundred dollars?

Whether they can find out or not is irrelevant, although my guess is the association/league/what have you is deducting amounts paid to the umpires (assuming its a taxable entity).

However, whether it can be found out really begs the question. People should voluntarily report all their income - otherwise they are just freeloading off the rest of us.

 

[spos21ram]

Well it is a gov't agency. The Gov't probably can find out whatever they want. If the gov't can find Saddam in a hole I'm sure they can figure out if umpires arn't reporting all earnings. I'm just saying they'd have a hard time figuring it out and probably not worth their resources for a few hundred dollars in tax money.

I run the league and pay the umpires either in cash or by check, but usually make it out to cash. I do this upon their request. There are a couple umps who I pay by check and write it out to them personally. I have no idea if the umpires claim the money or not. I've never really cared to ask.

What if the umpires don't have a great "real" job? If they don't have a high enough income then they wouldn't be paying any taxes anyway. They'd just be getting it back in tax returns.

My league is technically non-profit also if that means anything.

 

[synergy40]

Well it is a gov't agency. The Gov't probably can find out whatever they want. If the gov't can find Saddam in a hole I'm sure they figure out if umpires arn't reporting all earnings. I'm just saying they'd have a hard time figuring it out and probably not worth their resources for a few hundred dollars in tax money.

Some guys around here take in up to 1000 a month cash. We can make a few hundred dollars on a Saturday doing 3 double headers.

 

[spos21ram]

Some guys around here take in up to 1000 a month cash. We can make a few hundred dollars on a Saturday doing 3 double headers.

I meant a few hundred dollars in what they'd be paying in taxes, not what they actually make, but I understand what you're saying. I'm talking about my league only, not tournaments or anything like that. I'm sure the State UIC keeps some record since we are a sanctioned USSSA league.