Big question I need help answered with???

S

sweeps777

New member
:wave: Hi ya guys,

I apologize for not posting for a LONG while but I have amazing news...last year I won a baseball cap this year after a slight hiatus of not winning one iota of a prize...in the mailbox today I received a very official FED EX flat envelope and in it I read that I won a ProForm XP 615 Treadmill from Fitness Magazine and the letterhead read Meredith Corporation. I have been given 10 days within the reciept of this letter to respond back to them as far as claiming this prize.

Now don't get me wrong I entered the sweepstakes between 10/2/07 and 11/27/07 and I was chosen as the potential grand prize winner, it sounds great but I am worried because I'm still not sure if I am the winner?

Also, this prize in the letter stated it was valued at $599 and I as the winner would be solely responsible for any exceeding taxes, which I would like to know how much would they possibly charge me as far as taxes are concern on this treadmill prize? And here's the kicker, I haven't worked this entire year (due to thyroid health issues) and I won't be able to fill out any kind of tax return at all but the letter also stated I would have to fill out a separate form for the IRS to report taxes on my winnings....how would I do that if I haven't worked at all and I don't even have a W-2 form in my name at all this year...how do I go about claiming a prize of this substantial magnitude???

The letter also stated I would need to give them permission for them using my photos/likeness for any kind of requested adverstisements without my approval/inspection and this form had to be notarized also.....


I am worried that as my first grand prize that I have WON, I am seriously thinking about turning down this treadmill prize because I am worried I may not be able to afford the taxes on this prize. Although I do want it very badly....this is the best X-mas I could ever hope for ...although I am still gunning for an Ipod its only been 2 years that I've still been sweeping with no luck on this particular prize :crazytongue:


So anyone with any comments please I need all the help and advice I could get......thanks in advance for taking the time out and reading my question....


-Sweeps777
 
if you trully have no earnings for the year you can still send in a 1040 with the prize listed on it and your taxes would be 0, your taxes would be figured on everything you made during the year minus all your deductions.
 
First off, CONGRATS sweeps777!!! :headbang: :cheers: :headbang:

I KNEW you would win someday!!! :laughing:

Now as far as taxes go? Sweeps wins are added to what you make, and you have to make enough to file, to even claim them, so I'd think you wouldn't have to?

Sweeps wins bump us up into another tax bracket, so we end up paying (losing really, since we always get a refund) and general rule of thumb for us is 1/3'd. So a $600 win is a $200 tax hit.

We weigh the pros and cons on wins, and if we know they will re-award, it makes it MUCH easier to turn a prize down - Bob recently did so with a trip win.

If this is a prize you just HAVE to have, then go for it, and ENJOY!!! :headbang:
 
I was chosen as the potential grand prize winner, it sounds great but I am worried because I'm still not sure if I am the winner?

You are only the potential grand prize winner until you return the affy and they verify your win - so you ARE really the winner!!! :laughing:
 
ll1.....thank you for clarifying the tax question for me..... :)

Amy..... :cheers: thanks sooooooooo much finally finally finally a win that I am not sure if I can afford to claim due to tax issues.... but on the up side I thank you for answering my very novice but necessary questions on how to win a sweepstakes prize without blowing it.

Amy when the letter read "potential" I didn't want the mistake of thinking it was a scam or a mistake that me sweeps777 won a prize....I'll be honest though $200 for this prize for me is a bit steep....still thinking whether or not if I should accept this prize?

By the way I'm playing devil's advocate here, what happens if I don't accept the prize but I e-mail the manager of the sweepstakes ....she left me her name, number, & e-mail address and I let the manager know that I cannot claim this prize, will the sweep gods punish me number one and number two is an alternate winner chosen? LOL


-Sweeps777 :love:
 
an alternate winner would be chosen as most rules have it in there content. however in very few sweeps the prize is voided if prize is not claimed but that is in very ,very few sweeps. I doubt that you would owe any taxes, one thing you could do is download one of the free tax ( like tax-act)downloads. and fill it out as if you were going to send it in and see what it comes out too.
 
ll1 said:
an alternate winner would be chosen as most rules have it in there content. however in very few sweeps the prize is voided if prize is not claimed but that is in very ,very few sweeps. I doubt that you would owe any taxes, one thing you could do is download one of the free tax ( like tax-act)downloads. and fill it out as if you were going to send it in and see what it comes out too.
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That's the thing I don't fill out my tax returns I let the accountant handle my stuff because with all the huge bouts of unemployement gaps I have suffered, I don't want the chance of filling something out wrong. Plus I wouldn't know where to start or how to do my taxes as sad as I am to even admit that, its the truth. I tried it 1 year I ended making more of a mess than anything.

-Sweeps777
 
I would ask your accountant before turning down the win, what the win would do or not do to you!
 
sweeps777 said:
ll1.....thank you for clarifying the tax question for me..... :)

Amy..... :cheers: thanks sooooooooo much finally finally finally a win that I am not sure if I can afford to claim due to tax issues.... but on the up side I thank you for answering my very novice but necessary questions on how to win a sweepstakes prize without blowing it.

Amy when the letter read "potential" I didn't want the mistake of thinking it was a scam or a mistake that me sweeps777 won a prize....I'll be honest though $200 for this prize for me is a bit steep....still thinking whether or not if I should accept this prize?

By the way I'm playing devil's advocate here, what happens if I don't accept the prize but I e-mail the manager of the sweepstakes ....she left me her name, number, & e-mail address and I let the manager know that I cannot claim this prize, will the sweep gods punish me number one and number two is an alternate winner chosen? LOL


-Sweeps777 :love:
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I'm seriously so happy to hear you won - whenever I imagined how consistent I'd be if I had to go to the library and wait my turn? No sweeping would ever be done!!! :nono: :laughing: :crazytongue: :whistle:

The $200 hit was an example that WE (Me & Bob) get because of how much he makes - everyone is different, and I totally agree with Lee - contact your acct!!! :laughing:

As far as contacting them? Go for it - they *might* substitute for cash - it's rare, but it DOES happen!!! :sunny:
 
Also, another thing you need to know is that ARV's are normally over-inflated approximations. The IRS requires that you pay taxes on the fair market value of the prize not the ARV. For your tax return, and in case they don't adjust the 1099 to the true value, look up the best retail price you can find on that exact model and print it up for backup documentation for your tax return.
 
Amy...lemme tell you between job hunting and sweeping at the public library as much as I could not an easy feat everyday but then I stopped for a little while cause the instant wins NEVER happened for me so I stuck to the one entry ones way easier on me....

But I'm still worried that since me not being able to work at all this year equates to me not even having to fill a tax return out...and a possible exorbitant tax on this treadmill that I really don't have the dinero for means I may have to turn down this prize.... still mulling it over but feel as though I won a prize and I can't even afford the darn taxes on a $599 machine....so basically there's no pont in me annoucing my win in the winner's circle which I would have love to be in..... break out the champagne sweeps777 finally won a prize in the year 2007 ahh well so much for dumb luck.....


but I appreciate all of your advice guys.....I'm definitely gonna mull this over some more....


-Sweeps777 :scratch:
 
Call up your accountant. He will be able to tell you right off the bat. I really don't see how you would owe any taxes on it at all. Taxes on a prize like that, even for us, wouldn't be much at all. Not to mention, you could always sell it too.
 
My medical expenses always eat up everything else so taxes are never a big issue for me. But do ask your accountant and congratulations on your win!
 
See that's the thing I just found out that since I have no expenses medical or otherwise, I would have to be claimed on my mom or dad's tax return and that win would have to be document on their forms...sheesh this is so not worth the trouble, my folks think being unemployed & sick as a dog is enough of me being such a loser...but with my thryoid issues and no job, no health insurance and winning this treadmill became more of a dilemma than a pure enjoyment. My folks wouldn't allow such a substanial thing like this to be clumped on there tax return...my folks and I don't see eye to eye lately....

oh well got 9 days left to mull it over some more. and to think I am on here to win an ipod (still), or a laptop and poof I get a treadmill.... what to do, what to do??? :whistle:
thanks for helping me guys....

-Sweeps777
 
congrats on the win. :cheers: I hope you find a way to either keep it or maybe get a cash subsitute. sounds like a great win.
 
sweeps777 said:
See that's the thing I just found out that since I have no expenses medical or otherwise, I would have to be claimed on my mom or dad's tax return and that win would have to be document on their forms...sheesh this is so not worth the trouble, my folks think being unemployed & sick as a dog is enough of me being such a loser...but with my thryoid issues and no job, no health insurance and winning this treadmill became more of a dilemma than a pure enjoyment. My folks wouldn't allow such a substanial thing like this to be clumped on there tax return...my folks and I don't see eye to eye lately....

oh well got 9 days left to mull it over some more. and to think I am on here to win an ipod (still), or a laptop and poof I get a treadmill.... what to do, what to do??? :whistle:
thanks for helping me guys....

-Sweeps777
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If you are under 18 and living with your parents, they can claim you as a dependent. Otherwise, you have nothing to do with their tax return; and your income is always separate from theirs. Even when I was underage and living with my parents, I had to file my own simple form for taxes.

I'm really confused as to why this is such a big issue to even be "mulling" over especially with not enough income to file. :scratch: Just claim the prize. :popcorn:
 
LIDARKSIDE said:
If you are under 18 and living with your parents, they can claim you as a dependent. Otherwise, you have nothing to do with their tax return; and your income is always separate from theirs. Even when I was underage and living with my parents, I had to file my own simple form for taxes.
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That isn't entirely true. Parents can claim children as dependents until an older age under certain circumstances (primarily if the "child" age 18-21 or so is in college). I am 23 and 2007 is the first year I will not be claimed as a dependent on my parents taxes. HOwever I do know that even if you are claimed as dependent you still can file your own taxes. For example i had income seperate from my parents that I filed taxes on from when I was 16 until 2006. I always received a tax refun though. So even if your parents are claiming you as dependent you can file this seperatly and if it's your only income you might not have to pay taxes. I know it most states you don't have to pay taxes if you make under a certain amount.

I don't know all the details but that's just what my experience as a young person has been.
 
anikka said:
LIDARKSIDE said:
If you are under 18 and living with your parents, they can claim you as a dependent. Otherwise, you have nothing to do with their tax return; and your income is always separate from theirs. Even when I was underage and living with my parents, I had to file my own simple form for taxes.
Click to expand...

That isn't entirely true. Parents can claim children as dependents until an older age under certain circumstances (primarily if the "child" age 18-21 or so is in college). I am 23 and 2007 is the first year I will not be claimed as a dependent on my parents taxes. HOwever I do know that even if you are claimed as dependent you still can file your own taxes. For example i had income seperate from my parents that I filed taxes on from when I was 16 until 2006. I always received a tax refun though. So even if your parents are claiming you as dependent you can file this seperatly and if it's your only income you might not have to pay taxes. I know it most states you don't have to pay taxes if you make under a certain amount.

I don't know all the details but that's just what my experience as a young person has been.
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I was speaking in general. I know that college students can still be claimed as dependents by their parents. However, the OP is saying that his income may be added onto his parent's income on the tax form, and that is incorrect. He would have to file his own separate return.
 
If the treadmill is something you may not use all the time....you could claim the prize and then sell it. That would take care of the tax money and maybe even give you some left over to buy something you would use.

Just my thoughts :sunny:
 
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