Tax question

B

blue77

New member
I recently won an xbox 360 with kinect. The sponsor said it was valued at 400. I didn't get a 1099 form from them. I know that they reported my win to the IRS. I have never won anything I've had to pay taxes on before. I was hoping some one could tell me how to file this.
 
It depend what state your are in. In KY it has to be over $600 before you have to file it on your taxes.


Congrate on your win.
 
What state you're in has nothing to do with anything since wins are reported on FEDERAL income taxes. Usually a sponsor doesn't report wins, and send you a 1099, on wins under $600. But since all wins are technically supposed to be reported they can send a 1099 for any amount won.

P.S. If you received the X-Box and Kinect during the year 2011 they still have till Jan. 31st, 2012 to send you a form 1099 to file. They have the same deadline as an employer has to send you your tax forms. When in doubt just wait till after Jan. 31, 2012 to file your income taxes.
 
goodguy46947 said:
What state you're in has nothing to do with anything since wins are reported on FEDERAL income taxes. Usually a sponsor doesn't report wins, and send you a 1099, on wins under $600. But since all wins are technically supposed to be reported they can send a 1099 for any amount won.

P.S. If you received the X-Box and Kinect during the year 2011 they still have till Jan. 31st, 2012 to send you a form 1099 to file. They have the same deadline as an employer has to send you your tax forms. When in doubt just wait till after Jan. 31, 2012 to file your income taxes.
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This is correct! According to the IRS laws all wins are considered as income. Sponsors are required to send 1099 on all wins valued over $600, but I have received some for less.
 
You will also have to report it on your Alabama income tax also. You have to report the fair value so should be able to declare less than $400 as that value seems a little high. Look for ads for the exact model you won .

Depending on your income it will effect you very little. The last X-box I won I checked my taxes both ways and it did not change my Federal return and lower my Alabama refund by $2.

Congrats on your win from a fellow Alabama resident

Bruce
 
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