As you know, club volleyball can get pretty expensive, especially considering travel, equipment, and club fees. I have seen some club’s cost can be anywhere from $2500-$10K+ depending on your club and where you are located.
This doesn’t include the cost of travel to tournaments, private lessons, eqequipmenttc. That is just for one child, let alone parents with multiple kids participating in club sports.
As a parent of a volleyball-playing daughter and a federally licensed enrolled agent, I’ve been searching for ways to make this journey more tax-friendly. We all just got back from the Las Vegas Red Rock Rave, and as I went through the day, and watched every family walking by thinking the same thing. How much love they have for the children and the sacrifices they are making in time and money.
I want to share some tips that have researched and some that have helped me maximize tax savings and manage the financial side of this amazing sport.
Child and Dependent Care Credit:
- Did you know that if your child is under 13, and their volleyball activities enable you and your spouse to work or look for work, you might qualify for the Child and Dependent Care Credit? This tax credit can help offset the cost of qualifying childcare expenses, including volleyball club fees. Definitely consult a tax professional or review IRS Publication 503 for more details.
Keeping track of expenses:
- I’ve found it super helpful to keep detailed records of all club volleyball-related expenses throughout the year. This includes registration fees, uniforms, equipment, and travel expenses. Having this documentation makes it easier to support any tax deductions and credits I claim.
Deducting travel expenses for tournaments:
- As a business owner, I’ve discovered that I can deduct travel expenses related to my daughter’s volleyball tournaments as a business expense when I also do business while at the tournament. Such as visiting clients, hosting workshops, lead generating, filming video for advertising and anything that is related to my business. I may not be able to write the tournament cost by my travel expenses associated could be. Just remember to keep detailed records of the trips, including receipts for lodging, transportation, and meals. Consult a tax professional to see if you qualify for this deduction too and do it correctly.
Checking out local and state tax credits:
- Some states offer tax credits or deductions for youth sports expenses. TThere are Make sure to research your own state’s tax laws!
Unlocking Volleyball Club Scholarships: A Financial Boost for Parents and Young Athletes
- Some volleyball clubs offer scholarships to help offset the cost of volleyball expenses. These scholarships can be a financial lifeline for parents, as they can cover or reduce club fees, travel expenses, and equipment costs. Clubs may offer scholarships based on financial need, athletic performance, or a combination of both. Parents should research and inquire with their local clubs about the availability of scholarship opportunities. Applying for these scholarships can help alleviate the financial burden of club volleyball, allowing young athletes to pursue their passion for the sport without putting undue strain on the family budget.
Fundraising and crowdfunding:
- How about doing a fundraiser to help offset volleyball expenses. I have not done that yet for my daughter. However, when my son was in boy scouts and traveling to United States Naval Academy while on his college search our church did a fundraiser for him and we also had family members and friends help contribute towards his cost. This can dramatically help volleyball parents due to the high cost of our sport.
Saving with a Coverdell Education Savings Account (ESA):
- Although ESAs are primarily designed for education expenses, I found out they can also cover the costs of extracurricular activities like volleyball clubs. Contributions to an ESA aren’t tax-deductible, but earnings grow tax-free, and withdrawals for qualified expenses are tax-free too. Talk to your tax professional to see if that is possible.
Hiring my volleyball player as an employee:
- Here’s a tip I’ve tried and this is my personal favorite, because my daughter is employee of my company and provides marketing and social media work for my business.I hired my daughter in my business, paid her for the work she provided, and then she used that income to pay for her volleyball expenses. I got a tax deduction for my business, and she was able to cover her own costs for the sport.
Supporting our kids’ passions can be financially challenging, but by using these strategies, I’ve made my daughter’s volleyball journey more tax-friendly. Remember to consult a tax professional to ensure you’re taking full advantage of available deductions and credits specific to your situation. Good luck, and let’s keep cheering for our young athletes!
Carlos Samaniego, EA
Federally Licensed Enrolled Agent
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