Sweeping and Taxes

anikka

anikka

Active member
First off i know none of you are tax experts so i'm not going to hold you to anything you say....The response I tend to get around here when I ask anything about taxes is "ask your tax advisor". First of all I do my own taxes so there is noone to ask. Second I just want to know your personal experience so I have a general idea of what to do/where to look etc.

For several larger wins in 2007 I had to fill out an affy and a tax form. So what's next? Do I get something in 2008 from the sponsors? Or? Do you fill out a seperate tax form when filing income tax forms (if so what's the name/number) or do you add it to your income or something else? I know there is something with a 1099 but I thought that's what sponsors will mail me. I'm a tad confused and trying to be on the ball by thinking about my taxes in January instead of April!

Thanks!
 
your winnings show on your taxes as regular earnings, if you receive a 1099 you will use it to figure your taxes for that year, normally those taxes are placed on line 21 on a 1040 form with an attached other income form with the winnings reported on form w-2g which is all added as if you earned the money when you complete a 1040
 
You will receive a 1099 for anything over $600. One important thing to remember is that 1099's do not have to be mailed out by 1/31. So, it is important to keep track of what you have received and what you are still waiting on.

Technically, you should be reporting all your wins regardless of the value. Whether you do or not is up to you.

Hope that helps.
 
My winnings cost lost me a little over $1,000.00 in a return last year. But what the heck: I gained $6,000.00. Now thats a good deal if I've ever heard one. I am careful now though and I do not enter contest that I truly don't want to win.
 
I was wondering about this too. I know I'll have to report my car win :laughing:, but am wondering about the Staub cookware I won (value was $529.00), and I had to send in my SSN#, but if it's over $600, do I need to report this? I think my rule of thumb will be anything over $500, or anything that I had to send in my SSN # and/or have notarized is worth reporting. I'm going to check out the IRS website later and see what I can find out.
 
If you do your own taxes and download one of the free sofware versions ie taxact or turbo-tax it will ask you if you had winning or if you had a 1099 and you can fill in the numbers as it asks you which makes it very easy to file. and it will add any forms needed if you print out or send those forms if you e-file.
 
How about if you won something last year and haven't received it yet. Is it reportable for the year you won the item or the year you receive the item? Thanks!
 
Speaking from experience, if you have had a big win (like the car, for instance), I highly encourage you to not do your own taxes, but hire a professional (unless you are one, yourself). I spent about $180 last year to have my taxes done, and that woman was exceptionally good about finding every deduction, etc.

Also keep in mind that if you've paid a lot in property taxes because of a big win - consult with a tax professional, because state property taxes can be added to your federal deductions the following year.
 
All prizes are required to be reported on your tax return. The IRS only requires that the sponsor report everything $600+. For anything under that amount, you are on the honor system in reporting it on your tax return.

You report the fair market value (FMV) of a prize, not the approximate retail value (ARV). However, you must have documentation showing the true value of the prize. With trips, you have to get the actual airfare for the flight and seat you are booked in, hotel rate, etc.

You only report the prize on your tax return for the year you receive your prize.

The IRS' site has information on this, or you can call them with questions.
 
LIDARKSIDE said:
All prizes are required to be reported on your tax return. The IRS only requires that the sponsor report everything $600+. For anything under that amount, you are on the honor system in reporting it on your tax return.

You report the fair market value (FMV) of a prize, not the approximate retail value (ARV). However, you must have documentation showing the true value of the prize. With trips, you have to get the actual airfare for the flight and seat you are booked in, hotel rate, etc.

You only report the prize on your tax return for the year you receive your prize.

The IRS' site has information on this, or you can call them with questions.
Click to expand...

This is not necessarily true. I won an Alienware computer at the end of December 2006 from Verizon. I received the computer and a 1099 for 2006 in January of 2007. I also won $1000 from Swiffer at the end of December 2006, the check and the 1099 for 2006 also arrived in January. It's just like wages that are earned in December that you may not get until January of the next year.
 
pmeek said:
LIDARKSIDE said:
All prizes are required to be reported on your tax return. The IRS only requires that the sponsor report everything $600+. For anything under that amount, you are on the honor system in reporting it on your tax return.

You report the fair market value (FMV) of a prize, not the approximate retail value (ARV). However, you must have documentation showing the true value of the prize. With trips, you have to get the actual airfare for the flight and seat you are booked in, hotel rate, etc.

You only report the prize on your tax return for the year you receive your prize.

The IRS' site has information on this, or you can call them with questions.
Click to expand...

This is not necessarily true. I won an Alienware computer at the end of December 2006 from Verizon. I received the computer and a 1099 for 2006 in January of 2007. I also won $1000 from Swiffer at the end of December 2006, the check and the 1099 for 2006 also arrived in January. It's just like wages that are earned in December that you may not get until January of the next year.
Click to expand...

I got this information directly from the IRS. Per the IRS, you go by the date you receive the prize not when you win the prize.
 
Oh boy, now I'll have to go thru everything I won in 07 (what a pain!!). I was already dreading getting my stuff together for taxes. I do have a guy who does our taxes (thank goodness). I wouldn't even attempt to do them on my own - with my mad math skills (NOT!!).
 
Wolfie said:
You will receive a 1099 for anything over $600. One important thing to remember is that 1099's do not have to be mailed out by 1/31. So, it is important to keep track of what you have received and what you are still waiting on.

Technically, you should be reporting all your wins regardless of the value. Whether you do or not is up to you.

Hope that helps.
Click to expand...

Is there a date 1099's have to be sent out by? I'm waiting on 2 and will do my taxes as soon as the are received. I'm hoping it's sooner rather than later!
 
When is 1099 and cost basis information mailed out?

1099's are mailed yearly by January 31st. Cost basis statements are usually mailed by the last week in February.
 
:crazytongue: WOWW SA team AWESOME questons!!! Thanks Ms ANNIKA for starting this BALL off. Alot of info I thought I knew I had WRONG. Im def chatting up my H & R block mate. She told me prizes over 1.000. If its $600.00 SHE gets to redo my TAXES for the last 6 years. lol and I also am going to be very careful now like above which I enter. Ive got a LIST going no BRIDAL... No over 600.00 unless I really want it... :laughing:
 
I would never use H&R Block to do our taxes. You wouldn't believe how many H&R Block tax returns have to be redone by certified CPA's/accounts to correct all the errors they make. I know some people who have had H&R Block horror stories.
 
:scratch:I wonder if the TAX value veries from STATE to STATE. I do live in three differant STATES. My homebase, My vacation home then another where we often do law enforcement training a few times a year . :scratch:
 
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