Soccer's Offside
Rule Explained

 

Q: What is "Offside?"
A: Soccer was developed in England as a game for "gentlemen." The offside rule was developed to prevent players from "camping out" in front of the opponent's goal mouth and scoring goals when the goalkeeper isn't nearby and without doing any running, dribbling, or other soccer moves. Being offside was considered a form of cheating.

You can NEVER be offside in your own half of the field. You can NEVER be offside if you are dribbling your own ball. You can NEVER be offside if you are behind a ball that someone else is dribbling. (That is, if you are closer to your own team's goal than the ball.)

But, if a pass is made to you when there are not at least two opponents (e.g., the goalkeeper and another defender) between you and the goal you are attacking, the referee will blow his whistle and raise his arm straight up in the air. This is the signal for "offside."

There are a lot of special rules that tell the referee when to make an offside call. Most people only know one to two of these special rules. But SAYSO coaches and players, like good referees, learn them all.
A few additional resources

From the USSF site
From the FIFA site

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