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Horse people and reporting 1099 misc income on taxes
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runfastturnsmooth
Reg. Jan 2017
Posted 2018-01-11 9:42 AM (#7380151 - in reply to #7380035)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Extreme Veteran


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SC Wrangler - 2018-01-10 1:25 PM

Nateracer - 2018-01-10 12:16 PM

I would like to know if you even have to put in the 1099 if you don't claim your horses at all.   

The answer is yes. If you get a 1099 of any kind you better put it on your return. The IRS runs a 1099 matching program with tax returns. If the 1099 cannot be matched to your return they will be getting in touch with you.

For barrel racing things I never claim, put down or do anything government and tax wise barrel horses don't exist. Race horse stuff gets done but barrel earnings....I never report and have never been checked
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Dodge629
Reg. Oct 2003
Posted 2018-01-11 9:59 AM (#7380159 - in reply to #7380114)
Subject: RE: Horse people and reporting 1099 misc income on taxes



Some Kind of Trouble


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diggerdoo - 2018-01-10 7:20 PM
Nateracer - 2018-01-10 1:43 PM
SC Wrangler - 2018-01-10 1:25 PM
Nateracer - 2018-01-10 12:16 PM I would like to know if you even have to put in the 1099 if you don't claim your horses at all.   
The answer is yes. If you get a 1099 of any kind you better put it on your return. The IRS runs a 1099 matching program with tax returns. If the 1099 cannot be matched to your return they will be getting in touch with you.
I have been claiming them.  But many of the barrel races I go to make you fill out the tax paperwork, whether or not you won 100 or 5000, just to claim your check.  I'll get a 1099 on around $200 I won in May.   
Rae, you shouldn't be getting a 1099 for less than $600.  If you go to several races by the same producer and the total for the year is more than $600, you will get a 1099.  If you just won $200 somewhere, they should not send you one.



 

This is correct... no 1099's under $600.

I work for a CPA.. if I have 1099's from barrel racing we deduct expenses similar to the income amount.  
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bscanchaser
Reg. Feb 2005
Posted 2018-01-11 10:36 AM (#7380165 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes




100252525
I'm curious how the 1099 reporting on taxes will affect us down the road with the ELD/CDL requirements.  Will claiming the 1099 as misc income (hobby) vs. Schedule C   have any impacts with the enforcement of the CDL requirements since we are making money at races?  I intend to ask my accountant but hoping maybe someone here has some information.  

Edited by bscanchaser 2018-01-11 10:51 AM
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cranky B4 10am
Reg. Dec 2009
Posted 2018-01-11 10:37 AM (#7380166 - in reply to #7380036)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Military family

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OhMax - 2018-01-10 1:25 PM Horse related we keep track of everything but only write off enough to offset the 1099’s we do receive. That’s at the advice of our accountant.

This is what we do. I just save up all the receipts for feed, hay fuel and stuff. I have enough in hay expenses alone to off set the occasional 1099 I end up with.
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cranky B4 10am
Reg. Dec 2009
Posted 2018-01-11 10:38 AM (#7380167 - in reply to #7380165)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Military family

Witty Enough


Posts: 2669
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bscanchaser - 2018-01-11 10:36 AM I'm curious how the 1099 reporting on taxes will affect us down the road with the ELD/CDL requirements.  Will claiming the 1099 as misc income (hobby) vs. Schedule C   have any impacts with the inforcement of the CDL requirements since we are making money at races?  I intend to ask my accountant but hoping maybe someone here has some information.  

I'd be very interested to know this one too... 
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Justabrrlrcr
Reg. Nov 2017
Posted 2018-01-11 8:21 PM (#7380255 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes


boon


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If you claim the1099 as ordinary income. You aren't required to have cmv /eld.
If you claim it as a business (expenses) deduction. You are required to get Cmv/eld.
I read this on the Texas DMV website.
CDL is based on weight 26000>combined gvwr or gvwr 10000>on towed trailer.

Edited by Justabrrlrcr 2018-01-11 8:23 PM
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WetSaddleBlankets
Reg. Nov 2010
Posted 2018-01-11 8:34 PM (#7380258 - in reply to #7380255)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Gettin Jiggy Wit It


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Justabrrlrcr - 2018-01-11 8:21 PM

If you claim the1099 as ordinary income. You aren't required to have cmv /eld.
If you claim it as a business (expenses) deduction. You are required to get Cmv/eld.
I read this on the Texas DMV website.
CDL is based on weight 26000>combined gvwr or gvwr 10000>on towed trailer.

 But... How will they know?
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Justabrrlrcr
Reg. Nov 2017
Posted 2018-01-11 8:38 PM (#7380259 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes


boon


Posts: 3
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I don't have any idea how they know. I wouldn't think they can check your tax returns. Maybe it's based on the honor system.
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jd&ez
Reg. Oct 2003
Posted 2018-01-11 8:53 PM (#7380261 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Expert


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Location: Ky
They are not required to 1099 under $600 but they can and many do. I get several 1099's for $100 to $300 a year. Some companies don't send a 1099 unless it's over $600.

But 1099 or not you are required to report income. You may never get caught if you don't report it because it wasn't 1099'ed. But then again, you might? 
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Chandler's Mom
Reg. Jan 2015
Posted 2018-01-12 12:48 AM (#7380270 - in reply to #7380151)
Subject: RE: Horse people and reporting 1099 misc income on taxes



My Heart Be Happy


Posts: 6760
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runfastturnsmooth - 2018-01-11 9:42 AM

SC Wrangler - 2018-01-10 1:25 PM

Nateracer - 2018-01-10 12:16 PM

I would like to know if you even have to put in the 1099 if you don't claim your horses at all.   

The answer is yes. If you get a 1099 of any kind you better put it on your return. The IRS runs a 1099 matching program with tax returns. If the 1099 cannot be matched to your return they will be getting in touch with you.

For barrel racing things I never claim, put down or do anything government and tax wise barrel horses don't exist. Race horse stuff gets done but barrel earnings....I never report and have never been checked

You have been very lucky! I've had customers forget to report SMALL amounts of income. Several years later, the IRS sends a sweet little letter wanting their due. Plus you pay interest of course.

And while $600 is the magic number for 1099s, some people/companies/firms will send them for under that amount.

Edited by Chandler's Mom 2018-01-12 12:50 AM
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JLazyT_perf_horses
Reg. Dec 2010
Posted 2018-01-15 4:58 PM (#7380699 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes



Elite Veteran


Posts: 703
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Location: Illinois
I have a bachelors in accounting and am one credit shy of my masters as well....and I pay an accountant to do my taxes...I avoid tax stuff myself, I hate doing them. Find a good TAX accountant, CPA . You can get through a bachelors and just learn how to do basic tax forms. This is the first year I've made over $600 from a single producer, so we'll see what happens. Haven't gotten anything in the mail yet, but I am prepared to pay taxes on it.
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pHumphrey
Reg. Dec 2018
Posted 2018-12-05 6:37 AM (#7415485 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes


boon


Posts: 1
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Unfortunately, you can't deduct any expenses as long as the IRS doesn't give such an option. You may write it down in the Box 7 of your next 1099-MISC but it can cause way more questions from the tax guys
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lonely va barrelxr
Reg. Apr 2005
Posted 2018-12-05 7:28 AM (#7415486 - in reply to #7380699)
Subject: RE: Horse people and reporting 1099 misc income on taxes



Reaching for the stars....


Posts: 12245
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My farm is on a Schedule F, not C. It's an agricultural business, horse breeding and selling specifically. Yes, I love getting proof of winnings on my horses. I report every penny I earn in any way. I will never be getting rich from my Schedule F earnings, but at least I can show I am not throwing all the monies I spend on it  away.  

I also pay a top equine tax CPA to do our taxes. She is the go-to equine accountant for Middleburg VA. 
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streakysox
Reg. Jul 2008
Posted 2018-12-05 7:51 AM (#7415488 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes



Take a Picture


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I highly recommend that report all 1099's. I just got a letter from the IRS saying that I owe them $5300 from 2016. There was a 1099 in question and it was actually reported on my farm form. My accountant is handling that for me but I will probably get stuck for something. All 1099's are sent to the IRS.
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Gunner11
Reg. Mar 2011
Posted 2018-12-05 8:37 AM (#7415490 - in reply to #7380029)
Subject: RE: Horse people and reporting 1099 misc income on taxes



Cute Little Imp


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linds - 2018-01-10 1:06 PM

horsegirl - 2018-01-10 12:54 PM It makes me so nervous whenever I hear of someone doing a tax return filing themselves. There is no way we can know all of those tax codes and their intricacies each and every year. Let the pros handle it! Plus, that way they are responsible for any errors, as long as you have provided them accurate information. I pay about $250 for my accountant (I have normal source of employment, I itemize, and I have a rental property) to file my return and it is totally worth it. Plus, once I gather the paperwork and documentation, it only takes sitting down with her for about an hour to get it all done...and I'm ensured that it is done right. Just my two cents.

I've done my own taxes since I was 18.  Last year was the first year I was filing while married.  Not sure if I should file separately or jointly, we went to a tax preparation service.  Her software was the exact same as what I have been using for years.  Took her max 15 minutes and $390 later they had us.  Not this year.  I'm going off our return last year and am confident I can file with no issues.   

Same here! My husband was convinced that I wasn't doing it right myself because we had to pay in--but he wasn't about to do it himself. So last year I went to a tax place, they put in everything the same as I do, paid them $300, and we STILL had to pay in. I did it myself this year :)
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krape
Reg. Nov 2004
Posted 2018-12-05 3:55 PM (#7415540 - in reply to #7380015)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Veteran


Posts: 163
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Location: Pittsburg, Texas 75686
For years we claim it as a business.  If you have receipts and checks and entry info no worries. 
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OhMax
Reg. Feb 2013
Posted 2018-12-05 6:59 PM (#7415547 - in reply to #7380002)
Subject: RE: Horse people and reporting 1099 misc income on taxes


Married to a Louie Lover


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I believe some things have changed this year regarding 1099’s and “hobbies”. More or less you get to pay the taxes but you can’t deduct the expenses, how nice of them. At least that’s what I’ve heard.

For folks with serious amounts in winnings it may be worth the hoops to file as a business.
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