If you get paid to coach, you’re going to need to file taxes. Here’s how and what tax deductions soccer coaches can take.
Most youth soccer coaches are independent contractors. You’ll get a 1099 at the end of the year if you made $600 or more.
To pay your taxes, you’ll add a Schedule C to your individual tax return. If you expect to owe more than $1,000 during the year, you’ll need to make quarterly estimated tax payments to the IRS.
What tax deductions can a paid soccer coach take?
When you’re an independent contractor, you’re engaged in a business, so you can take ordinary and necessary expenses related to your business.
- Mileage: You can take the standard mileage deduction or track your actual expenses when you travel to away games. Trips from your house to home games and practices would generally fall under non-deductible commuting expenses. If you travel between club facilities, including for home games or practices, those trips would be deductible business trips.
- Tolls and parking: Tolls and parking fall under similar rules to mileage — deductible for business trips but not deductible for commuting trips.
- Travel expenses: If your team takes overnight trips and you have expenses like hotels, meals, flights, or rental cars, those are generally deductible. If your club reimburses you, you generally report the reimbursements as income and then deduct the travel expenses (they cancel out).
- Coaching courses and memberships: If you pay for a coaching course or join an organization like United Soccer Coaches (formerly NSCAA), those expenses are generally deductible.
- Equipment: When you buy equipment, it generally needs to be for your coaching. If you still play, you can’t deduct things that you also use when you’re not coaching.
- Software: If you pay for software like TeamSnap or other communication or coaching tools, those are generally deductible.
- Cell phone: You can only deduct the business portion of your cell phone bill. If you use your personal phone for coaching, you can’t deduct the full amount. You need to find a reasonable way to divide up the bill between personal and business use such as minutes or data usage.
What if I’m losing money?
If you’re losing money as a coach or the amount you’re making works out to less than minimum wage, you may be a hobby rather than a business. The general rule is that you’re a hobby if you lose money in three out of five years. You’re a business if you make money in three out of five years.
If you’re a hobby, you
- Report all of your income from coaching as other income on your tax return. You pay income taxes but not self-employment taxes.
- You can’t deduct any expenses — not even to offset your hobby income.
If all this sounds complicated, don’t worry. Just make sure you track all of your income and expenses. When you file your tax return, your tax filing software will walk you through everything you need to do.