1099 Problems

[deelishus]

This is a warning regarding Tiger Direct. I won a computer from them last year, I had a bunch of problems just getting it delivered and had I not been on top of them, I never would have received it. It was supposed to be a $1500 computer, I would not consider it worth even half that much, but that's a different story for another time. I have now been having issues getting my 1099 from them. (why am I surprised?) I finally received it the other day, I go to do my taxes and realize that the 1099 says the computer was worth $3000! Are they completely insane?!? I just wrote to them, and stated that I was very displeased and want a corrected 1099 immediately. Now, we all know I won't get it by April 15th, so here's my dilemma.......Do I use the wrong 1099 and overpay on my taxes, or do I assume they will correct the problem and estimate the amount at $1500 on my taxes?

In either case, I would warn you to beware of Tiger Direct when entering their contests. Not only are their prizes a bit sub-standard for the price that they tout them at, but they are v-e-r-y slow in responding and then you can't even be sure that when you do get things from them that they are going to be correct!

This is not to say that you shouldn't enter their contests, but I just want to forewarn you what you, too might have to endure.

 

[jwjones102004]

Prize values almost always being overinflated, I always use the fair market value, (at time of delivery), make sure I keep what I used to substantiate the value for my records, and do my taxes with that. Now, having said that, I will give the standard disclaimer that you should consult a tax professional if you are uncomfortable filing without the new 1099. And yes, Tiger Direct doesn't seem to be a well run organization. Good luck.

 

[lidarkside]

Just make sure you keep backup documentation of the true value of the prize. Find the lowest you can. We had to readjust two 1099's on our own for our taxes this year.