Jim,
My meeting today with my accountant has educated me some more about taxes and procedures!
As for foreign players who win money here, the reporting of income would happen based on the rules of the country that person lives. If a social security number couldn't be referenced (foreigners wouldn't have a SS# ) then the business entity responsible for producing the '1099 misc' form would not be required for them; the players responsibility would be to follow the tax filing rules of their native country. Conversely, if I travelled to international tournaments and won money, I shouldn't expect any tax documentation from them, but (based on US law) I would be required to declare those international winnings and would be able to list the corresponding expenses I incurred in the process, to be included on my tax return here.
The form used for listing winnings at tournaments is a 'Schedule C', which is actually a business reporting form. When I showed him our dialogue in this thread he confirmed that the way your are approaching your return is 100% correct, legit and the way to do it. The use of the word 'hobby' opened up a small can of worms as the government will never let someone realize a loss (tax wise) from a hobby and that nowhere on any tax form is there even a place to state that a particular activity is a 'hobby'. We assumed the hobby reference you made was more of the thought process behind how you approach foosball, but (unless you know something he doesn't) use of the schedule C is the correct form required for this and he was assuming (with 99% certainty) that's how your are reporting. Please correct me if I missed anything as he is more than happy to let me ask him these types of questions. This is the 22nd year he has prepared my returns and I can assure you he is a seasoned professional!
I hope this helps, Jim and anyone else, as April 15th swiftly approaches.
Take care.........................................Tyler
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