So far this month, I have received tickets to the Festival of Tree (which we used last night) and tickets to Shrek the Musical in March. I also received a Visine package from Lucky Break. I need to stay away from big prizes because of the $5,000 backyard playset I won this summer. I wish more prizes would be worth $499 to stay away from the taxman.
some useable and tax free gifts
- Thread starter dlangis12
- Start date
alexanernberg
New member
:sunny:Sincere congrats on all of your recent wins :sunny:
Sorry to be a bummer, but it's my understanding that they're NOT really tax-free. You just aren't reporting all of your income. Line 21 of your 1040 should be an "other income" line, and you must report ALL wins. (That's why you should keep a record of ALL your wins for the year and the FMV.) You are just only required get a 1099 form on prizes $600 or over. If you're committing tax fraud, that's your business, but I just wanted to correct the mistaken impression for anyone else reading the thread.
Congrats on your wins! :wave: