In total for this year I have won $600.00 this includes giftcards, paypal cash and survey checks and a bracelet worth less than $100.00. Do I need to file a 1099 form? Just in case, I'll file it with my taxes in January. I read on this site that prizes over $600 need to be declared but since I haven't won anything that substanial I wasn't totally sure. If you know just post reply thanks
Reporting my wins
- Thread starter rachel70
- Start date
spoon03331
Active member
This is the way I understand it: If you win $600 or more from one company,(whether its one win or multiple wins) they are required to send you a form 1099 at the end of the year. All of your little wins that dont require the companies to send you a form 1099, ARE supposed to be claimed on your tax forms at the end of the year (whether they add up to $600 or not), but you are on the honor system for this. I'm still fairly new to sweeping, so if the regular sweepers here see I've said something wrong, please correct me. Also, the companies you win from COULD send you a 1099 for wins of less than $600, but are not required to do this. Hope this helps and Good Luck!
anikka
Active member
This is the way I understand it: If you win $600 or more from one company,(whether its one win or multiple wins) they are required to send you a form 1099 at the end of the year. All of your little wins that dont require the companies to send you a form 1099, ARE supposed to be claimed on your tax forms at the end of the year (whether they add up to $600 or not), but you are on the honor system for this. I'm still fairly new to sweeping, so if the regular sweepers here see I've said something wrong, please correct me. Also, the companies you win from COULD send you a 1099 for wins of less than $600, but are not required to do this. Hope this helps and Good Luck!
You summed it up as i understand it. Just remember legally all wins are taxable. And remember not all "tax professionals" (ie non accountants) know the ins and outs of sweepstakes reporting laws. When in doubt report it.
lidarkside
Active member
Right on the money. We filled in our accountant (CPA) on prizes, ARV's vs. FMV's, etc. As is usually the case, she never handled sweepstakes prizes before. She checked everything over with the IRS' guidelines and regulations in reporting prizes and confirmed the information we gave her. Somewhere on this site, I posted the direct link to the IRS page for reporting prizes. :scratch:
The sponsor can, though, report any prize on a 1099 if they want. I had a 1099 made out for an $85.00 prize one time.
ARV and your taxes {TY to LIDARKSIDE}
http://www.sweepsadvantage.com/smf/arv-and-your-taxes-ty-to-lidarkside-t50686.0.html
I quoted it in that thread too lds :sunny:
http://www.sweepsadvantage.com/smf/arv-and-your-taxes-ty-to-lidarkside-t50686.0.html
I quoted it in that thread too lds :sunny:
Technically you have to report wins in excess of your costs to produce them. However, without a form 1099 from the payer, I would, as a practical matter, keep it to yourself. In my 26 years of sweeping, I have not reported minor (less than $600) prizes. Large ones (such as the $1000. prize I just won in the HINKLEY LIGHTING Home Makeover sweeps will result in a 1099). Use you own judgment and congrats. :headbang:
If you win a big prize can't you offset the win with the costs of sweeping? postage, internet cost, etc. I live in a state with legalized lottery and gambling. I have claimed losses against a lottery win( losing tickets). you can't claim more losses than what you won, but you can reduce the taxable amount.