question about real value of a prize vs reported value

M

mswolfe

Member
HI! I have a question that I know I have seen addressed but I cant find the answer. I won a trip that has a value of $2500 . I did the math etc with airline tix and hotel etc and it is less. Is there anyway to prove to the IRS that the prize value is overstated? Thanks in advance
 
mswolfe said:
HI! I have a question that I know I have seen addressed but I cant find the answer. I won a trip that has a value of $2500 . I did the math etc with airline tix and hotel etc and it is less. Is there anyway to prove to the IRS that the prize value is overstated? Thanks in advance
Click to expand...

There are a few threads on this topic. I copied this helpful link from one of the threads to get you started:
https://www.thebalance.com/how-to-dispute-an-arv-on-your-sweepstakes-taxes-897036


It is from this thread:
Hello World sent me incorrect 1099 - advice?

Be sure to document and keep copies of everything.
 
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mswolfe said:
HI! I have a question that I know I have seen addressed but I cant find the answer. I won a trip that has a value of $2500 . I did the math etc with airline tix and hotel etc and it is less. Is there anyway to prove to the IRS that the prize value is overstated? Thanks in advance
Click to expand...

Calculate the tax on your income + $2,500 Then calculate the tax on your income plus what you think the ARV should be. You may find that the difference isn't worth worrying about. For example, if the difference is $300 and you're in the 20% bracket, then the tax difference is $60. For some folks $60 is worth a fight. For some others the rational is - I got a $2,500 trip and it only cost me $60 - no big deal.
 
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