Grand Prize Model Sweepstakes

A

amberds1

Well-known member
I received an email today stating that I was a Grand Prize Winner of Modelo Limited Edition Streetwear Apparel by local artists valued at $1900. Therefore I would have to fill out a 1099 form in order to pay taxes on it since the value is more than $600. But the thing is… the clothes look like items I would never wear (nor anyone else I know) and they can’t even guarantee that they would come in my size so I’m not sure I want to even claim the prize. Has anyone else come across this situation?
 
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I have turned down a few thing and couple of trips and sometimes gotten second chance because someone turned something down. I think it's best if the taxes are more than you want to pay for something to turn it down, but it's still counts as a win just for fun
 
This makes me so sad since I’ve never won anything big before 😢 but I definitely wouldn’t use the prize. Does anyone know around how much you pay in Federal taxes?
 
amberds1 said:
This makes me so sad since I’ve never won anything big before 😢 but I definitely wouldn’t use the prize. Does anyone know around how much you pay in Federal taxes?
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usually 30% taxes to IRS. State varies
 
Congratulations on a grand prize win, in any case! Hopefully, there will be many more. :)
 
The brand, if you could call it that, trends toward street wear and is obviously not going to be of interest for everyone since it is branded merchandise with modelo on it. Since they cannot guarantee your size, I would pass because of the tax liability. Congrats on the in though!
 
Amberds1. The taxes that you would pay would be whatever your marginal tax rate for your income is. From the IRS for 2020:
Single

If taxable income is over:but not over:the tax is:
$0$9,87510% of the amount over $0
$9,875$40,125$988 plus 12% of the amount over $9,875
$40,125$85,525$4,618 plus 22% of the amount over $40,125
$85,525$163,300$14,606 plus 24% of the amount over $85,525

So if your regular income is (for the sake of simplicity) $40,125 and you had to report the win of $1900 then the tax liability on the prize would be 22% of the $1900 i.e. about $418.
 
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rookiesmom said:
Amberds1. The taxes that you would pay would be whatever your marginal tax rate for your income is. From the IRS for 2020:
Single

If taxable income is over:but not over:the tax is:
$0$9,87510% of the amount over $0
$9,875$40,125$988 plus 12% of the amount over $9,875
$40,125$85,525$4,618 plus 22% of the amount over $40,125
$85,525$163,300$14,606 plus 24% of the amount over $85,525

So if your regular income is (for the sake of simplicity) $40,125 and you had to report the win of $1900 then the tax liability on the prize would be 22% of the $1900 i.e. about $418.
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Thank u for the info!
 
amberds1 said:
I received an email today stating that I was a Grand Prize Winner of Modelo Limited Edition Streetwear Apparel by local artists valued at $1900. Therefore I would have to fill out a 1099 form in order to pay taxes on it since the value is more than $600. But the thing is… the clothes look like items I would never wear (nor anyone else I know) and they can’t even guarantee that they would come in my size so I’m not sure I want to even claim the prize. Has anyone else come across this situation?
Click to expand...
 
I passed on that sweep when I saw it. Clothes that are overpriced and "artsy". Yea, $1600 for clothes, right. Delcine the prize. I've done it several times when I see how much they inflate the value.
 
Yeah, I won some $7000 shoes. Figured I could sell them on Ebay. No one is buying. I've lowered my price drastically, still no buys. Now I'm stuck with a $7000 tax form / bill for the ugliest shoes I've ever seen. I am going to dispute the approximate retail value on my taxes, but still sucks. Lesson learned. lol
 
amberds1 said:
This makes me so sad since I’ve never won anything big before 😢 but I definitely wouldn’t use the prize. Does anyone know around how much you pay in Federal taxes?
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If I am not mistaken on over $600 prizes I've had to pay 20% of prize value in taxes. It's been a long time since I've won anything big so that may have changed.
 
nldagostino said:
ute
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nldagostino said:
Yeah, I won some $7000 shoes. Figured I could sell them on Ebay. No one is buying. I've lowered my price drastically, still no buys. Now I'm stuck with a $7000 tax form / bill for the ugliest shoes I've ever seen. I am going to dispute the approximate retail value on my taxes, but still sucks. Lesson learned. lol
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I would suggest you post on https://stockx.com.

I would assume you would pay $2-2.5 k taxes on that prize. I would target for selling between 3-4k. You might want to take high-quality pictures or a detailed description on your eBay product page. It can definitely take a while though.
 
amberds1 said:
I received an email today stating that I was a Grand Prize Winner of Modelo Limited Edition Streetwear Apparel by local artists valued at $1900. Therefore I would have to fill out a 1099 form in order to pay taxes on it since the value is more than $600. But the thing is… the clothes look like items I would never wear (nor anyone else I know) and they can’t even guarantee that they would come in my size so I’m not sure I want to even claim the prize. Has anyone else come across this situation?
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All the time. If I were you I would research who the local artist is and see if any of his work is selling on ebay/amazon.
 
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