Taxes are not easy for young professionals in the gaming industry. Income can come from many sources, and it is necessary to keep an eye on every purchase.
The Dallas Morning News reported on this, sharing the experiences of Call of Duty League OpTic Texas players and advice from accounting gurus.
Here are expert tips on how to handle taxes and why hiring an accountant might be the best option.
Bookkeeping account: An app like QuickBooks is good for tracking expenses, but Google Sheets is a free alternative. Write down every purchase for work. Monitors, gaming equipment, lighting. Keep these bank statements.
Call a professional: CPAs and tax accountants will make your life easier. The money spent to hire someone could avoid expensive fees with the IRS. Ask other professionals and enlist the help of tax experts.
It can be a hobby: Liz Alexander, CPA in Dallas helping a handful of game pros, was passionate about this one. Don’t be in a rush to make streaming a job if taxes are going to take a heavy toll on income.
Don’t be risky with non-deductibles: Alexander called this the “red face test”. If it’s going to make you blush trying to explain an expense to an IRS agent, don’t add it.
If it’s not an obvious work expense, don’t list it for a deductible: This will only make the process more difficult if the IRS doesn’t agree…but it doesn’t hurt to keep your receipts.
Find more esports coverage from The Dallas Morning News here.