grand prize winner

R

rice77

New member
I was very surprised and happy to receive an email notifying me that I was the grand prize winner of the brides magazine December 2010 must have sweepstakes. one Gabriel and co. diamond necklace valued at 1500 dollars. I am very happy or should i say my wife is. However i am only a few months into sweepstaking and am concerned of the tax implications this will have any tips or advice on what to expect am sending the affy tomorrow. I live in SC I assume they along with the feds will bite me. Am I correct to assume 30% each? any guidance appreciated...
 
the percentage of taxes due on your win depends on your tax bracket from your earnings. IMHO it shouldn't be that much, and if it makes your wife happy it is well worth it! lol
 
:wave:
If you itemize your taxes, you can deduct any losses(lottery tickets and suck)against your winnings.
:wave:
 
Congrats, Rice! Most likely you will be sent a Form 1099 at the end of the year in which you received the prize. Generally, the awarding company will use the Approximate Retail Value (ARV) as the amount of the prize. You can adjust the value on your taxes for a "true" price if it is less. For example, if Amazon is selling the same necklace for $900, you can adjust the value to that. I use TurboTax that automatically asks you if you want to adjust the price if you have a 1099 for winnings. For record-keeping, print out any price information you use (e.g. the Amazon page) in case IRS asks. (It is unlikely they will)

But again, Congrats! Most of my prizes have benefited my wife more than me!
 
How exciting!!! Very happy for you and your wife. She is going to be one happy camper. I know I would be if my hubby won something like that. Congratulations on a wonderful grand prize win :thewave:
 
That's great! And not to suggest you don't give it to your wife, but if you both would rather have cash and/or avoid paying income tax on the prize, you could always take it down to a jeweler's and see what they would give you for it (I'd call ahead of time to see if they do this). At the very least, get several appraisals on the necklace IMMEDIATELY after you receive it, because you only have to pay tax on the 'fair value', NOT the ARV of $1,500 - check with your accountant as well to see if you need to file a quarterly estimated tax to the IRS (that's totally depended on your tax situation). :cheers:
 
(sorry - hit the enter key too fast on the prior post) - continued ...

... of COURSE use some of the cash to pay the taxes - again, congrats :cheers:
 
thanks everyone for the advice and such. my wife has vowed not to gey upset if i am sweepstaking a little to long ever again...lol
 
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