Level 2

Tax Returns for Athletes

Forum|Forum|6 years ago
March 5, 2020
2 replies
13 views

If an Athlete is underaged (15-17yrs old) but breaking into the Professional league.... If the Athlete's business incurred a loss for the year. Can the athlete be included on the parent's tax returns (Child credit) or does the athlete still have to file his/her own tax returns and report the losses on a 1040?

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BobKamman

Level 15

What video games does he play? Is he losing his own money, or is it coming from the parents? There's no age limit on the Section 183 hobby loss rules. If he has a loss, he can create an NOL and use it in future years. I'm not sure whether it will help or hurt on the FAFSA.

G

GJ11_2Author

Level 2

Hi Bob,

Thanks for the reply. Athlete plays tennis. No FAFSA athlete will be going to school ona. scholarship.

Loss from the business is covered by the parents.

BobKamman

Level 15

Also, review the rules on start-up expenses.

Actually, this might be a subject that tax preparers need to watch, now that college athletes can be paid.

But keep in mind the problems that helicopter parents have caused for themselves (and maybe for tax preparers, when they claim "donations") in the cases publicized by Operation Varsity Blue.

George4Tacks

Level 15

You can not put the child's Schedule C on the parent's tax return. You might be able to claim the child as dependent on the parent's tax return.

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