Dilemma over accepting Prize!?!

C

ceredo

New member
Excited to get a certified letter that we were chosen to receive the 'grand' prize in this Fitness magazine contest when we filled out and returned the affy-

. FitnessMag.Com - Ultimate Ears Contest
Enter To Win One (1) winner will receive one (1) set of Ultimate Ears custom ear-monitors, retail value (“RV”) $1,000; Two (2) winners will each receive one (1)Triple.fi 10 Pros, RV $400; Four (4) winners will each receive one (1) Super.fi 5 Pros, RV $250; and six (6) winners will each receive one (1) Super.fi 3 Studios, RV $100

But..the dilemma is whether to accept the prize - first ever big win for me, but am not sure how much the taxes will be on $1000? Plus, these have to be custom fit by a certified audiologist, which will cost about $150...thanks in advance for any help:)

Thank you SA, I love sweeps whether I take this one or not!
 
Hmmmmm that's a tricky one (especially because I have no idea what any of the prizes are!). I don't think taxes should be bad, and you'll have to report it with your yearly taxes, but that shouldn't be bad either.

I won a 2007 Toyota Sweepstakes Camry this year and I'll have to report $20,000 on our taxes - I have a feeling we won't be getting a return this year! BUT I'm not complaining :crazytongue:
 
if it's not something you need or will definetly use I'd pass on this one. Especially since you have to spend even more money to use it. The taxes might not be bad (depending on your income) but if it's something that has to be fitted you probably can't really sell it or do anything else with it.
 
Check to see if your insurance company will pay for the fitting. They do many times and that would solve one of your problems.
 
Congratulations on your win, but sorry that you may not be able to accept it. That's really a bummer.

As far as taxes go, you won't have to pay them outright. The sponsor will send you out a form to include with your 2007 federal taxes (and possibly state taxes too, if applicable???) The $1,000 prize winnings will be treated as 'other income' on your taxes, and they will be taxed at the same rate as your income is taxed...and that is dependent on the amount of income you have and your filing status (head of household, joint, etc.)

Hope everything turns out alright!!
 
Thanks for all the help!

I've tried to call the person in charge of the sweeps..I'm really very excited to win this prize (as I see it, these are ear-buds, that can be used with an i-pod or computer), but had a few questions about the details the affy didn't cover. Hope it all works out!
 
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