How much does a win have to be before they tax you???

[anniehall4000]

I got an affy today that asked for my social security #, and i know they ask for it when they're gonna send you some tax forms, but my prize is only $225 and i heard somewhere (not sure if it's true) that they usually only tax you when the win is over like $400 or something like that.

Do you think this is just standard practice for the company to ask for your SS just in case, or will i have to pay taxes on it? Because i had won a similar prize that was over $300 and i had to fill out an affy but they didn't ask me for my SS.

Is it different with every company?

--Thanks!

i'm happy about the win though!!! eeeeeee! :headbang:

 

[Wolfie]

Annie:

All wins are taxable. After you receive $600 or more from any sponsor, they are required to send you a 1099. This means you can have a $50 win, a $100 win and a $450 win from the same sponsor and they are required to send a 1099. It does not have to be a $600 single win. Many sponsors will require the ss# in the event you win several prizes from them that total $600 or more and they need to send you the 1099.

You should report all wins on your taxes even if you don't receive a 1099. Regardless of the SS#, they have your name/address. It is very easy for the IRS to put those together.

The best advice I can offer everyone is to make sure you consult a competent tax professional.

Congrats on the Win! :sunny:

 

[anniehall4000]

Annie:

All wins are taxable. After you receive $600 or more from any sponsor, they are required to send you a 1099. This means you can have a $50 win, a $100 win and a $450 win from the same sponsor and they are required to send a 1099. It does not have to be a $600 single win. Many sponsors will require the ss# in the event you win several prizes from them that total $600 or more and they need to send you the 1099.

You should report all wins on your taxes even if you don't receive a 1099. Regardless of the SS#, they have your name/address. It is very easy for the IRS to put those together.

The best advice I can offer everyone is to make sure you consult a competent tax professional.

Congrats on the Win! :sunny:

good advice! thanks!