Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Playing tournament bridge is among my avocations. A couple of months ago, my team was fortunate enough to win the right to represent our District in an event at the upcoming North American Championships.

The victory comes with a $250 per person stipend. I am eligible for the stipend only if I actually play in the national event, which requires me to fly across the continent and take a hotel room for as many as four nights. I believe I also have to pay card fees, which will be $36 per day for as many as five days. As you can imagine, the expenses will easily swallow the stipend. It is unlikely that I would have attended the tournament had we not won the event.

I can't imagine that I'll end up being taxed on the stipend. What will be the appropriate way to report it?

Thanks for any help. --Bob
Print the post Back To Top
No. of Recommendations: 1
I can't imagine that I'll end up being taxed on the stipend.

Oh, ye of little faith. This is Amurrica!

What will be the appropriate way to report it?

Off the top of my head it's hobby income and expenses. Income on line 21 of the 1040. Expenses, limited to the amount of income, a miscellaneous itemized deduction subject to the 2% of AGI exclusion. Yes, the line 21 income adds to AGI, which means that it also adds to the amount of expenses you can't deduct.

Is this a great country or what?

Good luck at the tournament.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top