***ARV and your taxes*** {TY to LIDARKSIDE}

Re: ARV and your taxes {TY to LIDARKSIDE}

Wow, thank you so much for that info. I have won a few tvs that the value was way higher than I could have bought them for at the time. I just paid the taxes based on the 1099.. Lesson learned for me. Thanks!!
 
Re: ARV and your taxes {TY to LIDARKSIDE}

Thanks so much for that info. I sent it to my mom who won the trip to Sundance coming up next week! (love to get family members hooked on SA!)

Now it's nice and concise and we can refer back to it when we win lots of stuff!
 
question about reporting taxes info

I'm sorry if it was answered before, I can't seem to find a straight answer. I just had my first bigger win, ARV $299. What do I do about taxes? Do I have to report it now (if so, how do I do it?) or when I file my taxes for 2009? Is it true that you only report wins over $600? how does it work? I have no clue... Thank you so much!
 
Re: another tax question

No expert here but I have an accounting degree that I don't use and I've taken tax classes....

If you won in 2009 you report it when you file your taxes for 2009. I believe that companies are only required to issue 1099s for wins over $600 but they may also do it for smaller wins also. You are supposed to report all wins although the IRS only knows about the ones they get the 1099s for.

I'm sure others will have better info on this.
 
Re: another tax question

julie604 said:
No expert here but I have an accounting degree that I don't use and I've taken tax classes....

If you won in 2009 you report it when you file your taxes for 2009. I believe that companies are only required to issue 1099s for wins over $600 but they may also do it for smaller wins also. You are supposed to report all wins although the IRS only knows about the ones they get the 1099s for.

I'm sure others will have better info on this.
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What she said. :laughing:
 
Re: another tax question

That is correct. You do not have to pay taxes on anything under 600.00. If it is worth more then 600.00 then you have to fill out a tax form before they will give you your winnings. I won 5,000.00 a few years ago and ended up paying 2438.00 in taxes so you figure about 50% on anything over 600.00. That makes me very careful about the sweeps I enter. I figure anything over 600.00 I am basically going to end up paying 1/2 price for the item. A lot of times I end up passing because it is really not something I want to pay 1/2 price for. If you rely heavily on your tax refunds which a lot of people do be very sure you want what you won cause the Government is going to get you in the end ! (LOL) I also try to enter the strictly cash prizes. That way I can put back 1/2 for the taxes. Hope this helps. I was very glad I found all this out on a cash win. I would have hated to have won a 5,000.00 doghouse or something! LOL! GLA!
 
Re: another tax question

whitecoma said:
You do not have to pay taxes on anything under 600.00. If it is worth more then 600.00 then you have to fill out a tax form before they will give you your winnings.
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That's incorrect. If you go to the IRS' site, they state that prizes are taxable at fair market value. There are no stipulations stating that only certain prizes are taxable and others aren't. There is no room for interpretation other than everything considered a prize is taxable.

They require that companies report any prize over $600. However, a company most certainly can report any prize under $600 at their own discretion. I've had a number of prizes, as low as $85.00, reported to the IRS.

Any prize that the sponsor does not report to the IRS is the responsibility of the prize winner to report on their own.
 
Re: another tax question

The year that I won all the cash, I took all my sweepstakes stuff to my tax lady. I thought that if I had won over 600.00 dollars I had to pay takes on everything but she didn't even bother with anything but the 5 grand. Handed the rest of the papers back to me and said she didn't need them. That is where I got that info at.
 
Re: another tax question

whitecoma said:
The year that I won all the cash, I took all my sweepstakes stuff to my tax lady. I thought that if I had won over 600.00 dollars I had to pay takes on everything but she didn't even bother with anything but the 5 grand. Handed the rest of the papers back to me and said she didn't need them. That is where I got that info at.
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Then she apparently doesn't know how to handle the reporting of sweepstakes prizes. Keep in mind, that most CPA's (hopefully, that's what you used) have no experience handling the reporting of sweepstakes prizes.

Just like our CPA, we gave her all the documentation on the prizes we won and asked her to check the information out with the IRS also which she did and verified.

It sounds to me that your CPA may have been going by the guidelines of reporting lottery, casino, etc., winnings which have totally different reporting guidelines than sweepstakes winnings.

Also, keep in mind, that even if you didn't get a 1099 on any prize, even possibly a smaller one, it doesn't mean that the sponsor didn't report it to the IRS.

Some sponsors will make out a 1099 after an individual has accumulated $600.00+ in prizes from them. For example, if you have won three times from a sponsor and each prize was worth $200.00, they may then send in a 1099 for $600.00.
 
Re: another tax question

Thanks for the info. Yeah, she is a CPA. I am going to have to find out about this. I try never to cheat on sweeps and sweeps winnings. Bad Karma you know! I try to keep my Karma good and it seems to work out well. I have been very blessed with what has been given!
 
Re: another tax question

whitecoma said:
Thanks for the info. Yeah, she is a CPA. I am going to have to find out about this. I try never to cheat on sweeps and sweeps winnings. Bad Karma you know! I try to keep my Karma good and it seems to work out well. I have been very blessed with what has been given!
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Here's one section from the IRS that defines reporting prizes (Page 4, Box 3, Other Income):

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

It's pretty straight up--report the required reported income of $600.00 or more on 1099's, and report other prizes and awards. You'll notice that they don't define prizes as those that are reportable and those that aren't. It's straight up "also enter in Box 3 prizes and awards...". There are three exceptions, but you'll see none cover winning and accepting a prize.
 
Re: ARV and your taxes {TY to LIDARKSIDE}

LIDARKSIDE said:
whitecoma said:
Thanks for the info. Yeah, she is a CPA. I am going to have to find out about this. I try never to cheat on sweeps and sweeps winnings. Bad Karma you know! I try to keep my Karma good and it seems to work out well. I have been very blessed with what has been given!
Click to expand...

Here's one section from the IRS that defines reporting prizes (Page 4, Box 3, Other Income):

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

It's pretty straight up--report the required reported income of $600.00 or more on 1099's, and report other prizes and awards. You'll notice that they don't define prizes as those that are reportable and those that aren't. It's straight up "also enter in Box 3 prizes and awards...". There are three exceptions, but you'll see none cover winning and accepting a prize.
Click to expand...
 
Re: ARV and your taxes {TY to LIDARKSIDE}

Amy Shulkusky said:
Many times I've read posts where the winner took the time to contact the sponsor to determine if they *had* to do an affy when they won a lower tier prize - most of the time, the answer was yes.

But, unless you ask, you don't know if they only had one type of form and only those who won prizes worth $600 or more really needed to get the form notarized.

I guess the people doing the fulfillment just assume? :scratch:
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http://www.sweepsadvantage.com/foru...alk/62595-so-you-want-win-car-tax-update.html

johnsnook said:
Well, as some of you know, I won a JEEP WRANGLER last year, ARV $35,000, well I traded that for a lesser JEEP and some cash. Now it's tax time and I find out that, even though I traded for a lesser car and cash, I still have to pay the tax on the original ARV, because the IRS does not care what you do with your prize, or who you sell it to, even if you take a loss, they want the whole shebang. Well, I got a new car and enough cash to pay the taxes (state and fed) plus $3000 left in cash. Disappointing, but at least I got a car and some cash. So, if you are trying to win a car, or house, or anything big, please think about the tax that you will have to pay, and make sure that you can pay it, either out of pocket or by sale of the prize with some profit for you. And, also get some proof of the real ARV of the prize by looking on the net and recording it in case the sponsor hits you with a high 1099 value.
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I'm not, and have never been employed. Would I still file a tax form for a prize I won? Internet research has given me some very mixed responses so I'm pretty confused about this.
 
esdeathfarron - I sent you a pm {Private Message:

I moved your post to the ARV and your taxes {TY to LIDARKSIDE} thread, which has info/links you might find helpful

I assume you either are claimed as a dependent on someone's taxes, make too little to file, or subsist on some form of government assistance, in which case you need to check with a tax professional - however, in any of the 3 scenarios above, yes, they/you would have to file a tax form, depending on your situation and how much $$$ the prize(s) are worth.


esdeathfarron said:
I'm not, and have never been employed. Would I still file a tax form for a prize I won? Internet research has given me some very mixed responses so I'm pretty confused about this.
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