The biggest game of the year is almost here! Just as the new tax season is beginning to ramp up, football players are also kicking into high gear as their teams compete for a chance to win the most important showdown of the season.
In celebration of the big game and the beginning of tax season, we’ve compiled some fun facts and useful tax tips for football players and fans alike.
Filing as an Athlete
Even professional athletes are regular taxpayers like us! Those who live in states that don’t impose income taxes (such as Florida, Nevada, Texas, and Washington) don’t have their income taxed at the state level. However, they may be taxed on any income earned while playing an away game in an applicable state.
Filing as a Fan
You don’t have to be an athlete to receive deductions related to the big gameor other sporting events! If you’re throwing a party for your workplace or are lucky enough to travel to the game this year, here’s what you need to know in terms of tax implications and potential deductions.
If you’re an employer who is throwing a party for the benefit of your employees, you can fully deduct the cost of the party, any meals and entertainment provided. Under tax reform, there are some changes to entertainment expenses for business associates. Expenses for entertaining clients, prospects, or business associates will no longer be tax deductible under the new tax reform law. Examples of non-deductible entertainment expenses are events like sports games, shows, and concerts.
If you take your business associates to the big game this year, you can still deduct their meals at 50% as long as the costs of the meals are separate from the costs of the tickets or any other entertainment event you attend during the match. If you’re throwing a watch party for friends rather than employees, unfortunately, the expenses you incur will not be tax deductible. However, you can still save money on your football-related festivities by buying food in bulk, preparing your own meals and making some DIY decorations.
Attending the Big Game
Whether you’re in-state or out-of-state and planning to go to the game this year, consider the tax implications and deductions when participating in sports-related bets on champions or accepting sponsored giveaways.
At tax-time, TurboTax will ask you simple questions about you and give you the tax deductions and credits you’re eligible for based on your entries. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed.
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