income tax

J

johnsnook

Active member
Sweepstakes Plus Subscriber
I know that there are some pointers on income tax on winnings, but I cant find them via search in forum, could someone please give me a link? thanks
 
do you report small cash winnings - say $10.00? For instance, if you won $10.-$25. each on a few games so they totaled under $100.00, do they get reported?
If you had one bigger cash win, say $500.00, would you combine that with the small cash winnings so they still totaled less than $600.00? Would that get reported?
 
venice said:
do you report small cash winnings - say $10.00? For instance, if you won $10.-$25. each on a few games so they totaled under $100.00, do they get reported?
If you had one bigger cash win, say $500.00, would you combine that with the small cash winnings so they still totaled less than $600.00? Would that get reported?
Click to expand...

Legally, you're required to report and pay taxes on all winnings from any source regardless of the dollar amount. Race Tracks, Vegas, Sweepstakes etc.

Reporting is by individual company, and company A has no way of knowing that you also won from company B, C & D. Regardless, Company A is only required to report your winning from its own promotions.

Most people (my wife and I included) don't declare the income unless we get a 1099. Generally, if the win is for $600 or less the promoter isn't required to send a 1099 and most don't. There are a few however, that will, even for a few hundred dollars.

I don't think it's worth the time for the IRS or your State to pursue taxes on such small dollar amounts.
 
Do you know the deadline that they have to have the 1099's sent out by? I am not sure what or if I am getting any and need to make sure I don't schedule to have taxes done and a week later receive a handful of 1099s in the mail. :S
 
cakyjo said:
Do you know the deadline that they have to have the 1099's sent out by? I am not sure what or if I am getting any and need to make sure I don't schedule to have taxes done and a week later receive a handful of 1099s in the mail. :S
Click to expand...

cakyjo - using swagbucks, I used your words to search 1099's sent out by {I just added MUST} 1099's must sent out by & found:

When Do 1099s Need to Be Mailed Out to Clients? | eHow.com

But darn it, no swagbucks for me! I was hoping - I have almost enough for another $5 Amazon code, lol! :p
 
January 31st is the deadline for 1099s. I did receive 2 more today, Feb. 4th. I am hoping I have them all now. :( I love the prizes but I am not thrilled about all the 1099s that come with them.
 
Unless you've won a substantial prize, and are in a high tax bracket, the income tax increase is really negligible. Even an income increase of $1,000 won’t have a drastic tax impact for most of us.
 
You must log in or register to reply here.
Back
Top