Another frustrating win

[spoon03331]

I cant speak about Ca. or NY. state rules on sweeps. My experience (as a low income person) is: I claim my winnings on my state and fed taxes every year. With my lower income I have NEVER had to pay any additional tax worth mentioning. This year, I claimed over $16000 in winnings and had to pay the state $142 bucks. First time in years I had to pay. My winnings have never impacted my taxes to any extent. Also on 1099s. Most sweeps administrators will adjust a 1099. My recent trip to Las Vegas was expected to be $5000. It was not worth that. When the 1099 arrived, it was for just under $1500 and I didnt ask for the adjust. Budweiser sent me on a trip and I received over $3000 in prizes but the 1099 was for $1255 which was the ARV stated in the rules. Again I cant speak for tax rules for your state, but this is my experience.

 

[zwriter]

Lots of good advice above. I have won trips and keep receipt then pay the taxes on actual cost. It has always proven to be a very affordable way to take a great vacations.

 

[winbiglucky7]

If you won a really big prize where that came into play, usually tax is paid by the sponsor before receiving the prize so that you don't get surprised with the tax bill.

Usually people who win the HGTV dream home sell it because they can't afford the taxes on it! It's nice that they do give you some extra cash, though. At least you could visit the house before selling it!

 

[winbiglucky7]

I agree with all of the previous comments about trips and keeping receipts. Often the stated value of the prize is an estimate, especially if airfare is part of the prize. Airfare is drastically different depending on where you live. The estimated airfare value is almost always much higher than the actual amount paid. It can be tricky if part of the prize is a meet and greet with a famous person. I have seen crazy estimates for these.
Was the company asking for taxes to be paid before you went on the trip? Someone else mentioned a few weeks ago that Disney was asking for taxes even before leaving. I find this odd. I am hoping this isn't a new trend. I've only had to deal with taxes at tax time after I enjoyed the win.
Congrats on the win. I'm sorry you had to turn it down.

Yes, when you book an airbnb you have to pay it upfront, including the taxes.

 

[winbiglucky7]

I cant speak about Ca. or NY. state rules on sweeps. My experience (as a low income person) is: I claim my winnings on my state and fed taxes every year. With my lower income I have NEVER had to pay any additional tax worth mentioning. This year, I claimed over $16000 in winnings and had to pay the state $142 bucks. First time in years I had to pay. My winnings have never impacted my taxes to any extent. Also on 1099s. Most sweeps administrators will adjust a 1099. My recent trip to Las Vegas was expected to be $5000. It was not worth that. When the 1099 arrived, it was for just under $1500 and I didnt ask for the adjust. Budweiser sent me on a trip and I received over $3000 in prizes but the 1099 was for $1255 which was the ARV stated in the rules. Again I cant speak for tax rules for your state, but this is my experience.

Wow! That's a lot of wins! Save some for the rest of us, lol! Congrats!