APA sending out 1099 to players?

AcuraHeel

AcuraHeel

AzB Silver Member
Silver Member
I'm a little confused about getting a 1099 tax form from APA yesterday. It said I received an income of $1,050 last year. I'm assuming it's from going to Vegas in singles last April. I received NO where close to that amount. Others in my area are also receiving the same. I finished 9th and received:

a jacket
a pool cue
$100 cash


I'm just trying to understand where the $1,050 amount is coming from. Let's be honest, I took a loss for the year playing APA. (yearly dues,weekly dues,tournaments,etc) It's never been about the $$ but now I'm having to come out of my pocket to pay this. Anyone have any insight on this? I'm mad as well as others here locally in NC.


Thanks,


George
 
Did they cover the room or flight? Maybe that's where they're getting the number from.

What kind of cue was it? They may be putting a retail value on it for tax purposes.
 
That sounds strange...

Do note however, in the course of "earning" 1099'd income that you can write off expenses such as travel, lodging and entry fees. You may be able to offset the entire amount if you have some receipts. IIRC, you don't need receipts for any food expenditures under $75. So, you could say you spent $30 for breakfast, $50 for lunch and $70 for dinner each day...
 
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Did this come from APA national, or from your LO?

If this is going to be standard practice, then we will all need to start getting receipts for every week that we pay in...
 
Have you called and talked to the APA? They're probably the only ones who can actually answer your question.
 
if the 1099 was for 1050 and you got 100 cash, I'd say that means they are valuing the cue and jacket at 950 bucks
 
justadub said:
Did this come from APA national, or from your LO?

If this is going to be standard practice, then we will all need to start getting receipts for every week that we pay in...
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I would have to think it's standard practice. IRS guidelines require businesses to issue them if paying over 600 in prizes and awards to an individual
 
There is a dollar threshold re prizes that trips the need for tax forms, tho I don't recall it exactly. The company that I work for had to issue them for prizes won at big meetings, if the prize was worth over a certain amount. Hell, the ring they gave me as an award for performance came with a 1099. (Which I refused to even look at, I just gave it to my wife to go in with the rest of the tax stuff :)

The thing here is that we all pay in for this "prize". Are we really gonna need to collect receipts? Truly, if the APA is gonna issue these (and perhaps they have been forced into this) it will be their responsibility to keep records and issue yearly statements, won't they?
 
justadub said:
There is a dollar threshold re prizes that trips the need for tax forms, tho I don't recall it exactly. The company that I work for had to issue them for prizes won at big meetings, if the prize was worth over a certain amount. Hell, the ring they gave me as an award for performance came with a 1099. (Which I refused to even look at, I just gave it to my wife to go in with the rest of the tax stuff :)

The thing here is that we all pay in for this "prize". Are we really gonna need to collect receipts? Truly, if the APA is gonna issue these (and perhaps they have been forced into this) it will be their responsibility to keep records and issue yearly statements, won't they?
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The amount is $600. The APA will presumably have records to fall back on. In reality though, tracking isn't that hard. Heck I can go online and print out the weeks I've played. That along with the documented fee structure is enough to make me feel comfortable that if push ever came to shove, I'd be documented for the fees. Travel and stuff, if it ever comes to that, well I always have those receipts.

Of course, the caveat to all this is that the team I'm on really has no chance of ending up in Vegas.
 
IMO, its a CYA for the APA. They washed their hands of any IRS issues. Unfortunately, some would be led to pay an inappropriate tax & make playing in the APA even worse from a $$$ POV.
 
Is this the first year for 1099s, or they have always been sending them out annually?

TV game shows usually issue a 1099 to the winners for full Manufacturer Suggest Retail Price of prizes, even if the prizes were donated by the sponsors. For businesses its a way to avoid paying taxes, and offsetting profits with perceived expenses.

mbj said:
if the 1099 was for 1050 and you got 100 cash, I'd say that means they are valuing the cue and jacket at 950 bucks
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AcuraHeel said:
I'm a little confused about getting a 1099 tax form from APA yesterday. It said I received an income of $1,050 last year. I'm assuming it's from going to Vegas in singles last April. I received NO where close to that amount. Others in my area are also receiving the same. I finished 9th and received:

a jacket
a pool cue
$100 cash


I'm just trying to understand where the $1,050 amount is coming from. Let's be honest, I took a loss for the year playing APA. (yearly dues,weekly dues,tournaments,etc) It's never been about the $$ but now I'm having to come out of my pocket to pay this. Anyone have any insight on this? I'm mad as well as others here locally in NC.


Thanks,


George
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This is normal and and required for the APA to do this. Your stupid league operator should have explained this to you as they do in Md.

What you will have to do is is list this as income on your tax return but offset it with RECEIPTS from your airfare and hotel rooms. Everyone I know who has done this always breaks about even. You will have to go get copies of the receipts for the IRS. Good luck, and tell you LO to F off for not telling you to keep those receipts.
 
Bca ...vnea...apa

I have got a 1099 from all 3 organizations. If you receive more than $600 in earnings at Nationals, you will get a 1099 to file with yur taxes.

They are all businesses and pay out what they call earnings. If you receive more than $600, you will have to claim it on taxes. No biggie really, it won't change your refund too much.
 
Sounds like your league operator is an idiot. I went to Vegas for the 8-ball doubles tournament in 2010. Me and my partner each won like $675. Our league operator sent us checks for $575 each (below the reporting limit of $600) and paid for our tournament entry fee in Vegas which was another $100. He then bought us plaques and a few other things to make up the difference of what was owed to us. This way there was nothing for us to report.
 
Another thing that can be done in the future is to refuse all prizes except cash. You cannot be taxed on prizes that your refuse. Make sure you get proof of the refusal in case they later try to claim you took possession. Unless of course you really want that jacket or that donkey cue stick they give out.

<---- also got the 1099 and im pretty hot about it.
 
nicksaint26 said:
Sounds like your league operator is an idiot. I went to Vegas for the 8-ball doubles tournament in 2010. Me and my partner each won like $675. Our league operator sent us checks for $575 each (below the reporting limit of $600) and paid for our tournament entry fee in Vegas which was another $100. He then bought us plaques and a few other things to make up the difference of what was owed to us. This way there was nothing for us to report.
Click to expand...

He IS smart. What is his name?
taxagent2.jpg
 
I emailed our office today. They referred me to the St. Louis office. I was basically told that I signed a piece of paper that said anything above $599.00 is taxable. (That includes gifts and cash) I asked her to break down the $1,150 for me so I can understand it more.

$600 cash ** I had to pay my airfare,hotel with that money...so I basically broke even on that

$100 for Jacket ** ridiculous.. I could care less about the damn jacket

$350 for Outlaw Cue ** again ridiculous... I gave it away


** I asked her if I could have chosen not to accept the cue and jacket. She laughed and said "no one has ever declined the cue or jacket" My response was " I bet you... no one knew they were gonna be taxed on it" I assumed that I earned the cue for finishing 9th nationally in my bracket.

I play league (3) nights a week. I spend roughly $1,300-$1,500 a year in league dues,etc. I've always been told that our money went to trips,gifts,plaques,etc. I'm not trying to get out of paying my taxes. I fell like I'm being forced to pay for something that I didn't want.

They only report after $599 and they set the payouts for the brackets at $600. Go figure!!
 
I wonder how this will work for team payouts. Our team when to Vegas are recived around 4600 in cash for help pay for the trip. Will everyone get a 1099for the amount/8 or will just the team captain get one for all the cash. seems unfair that the tc would have to pay taxes on winnings for the team, but how would they claim airfare and room for the entire team as well?
 
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