Taxes on trips not yet completed

zonabogusia

zonabogusia

Active member
I know there was a nice thread on taxes on forum at one point, but I can't find it.

I need your advice. I received tax forms for two trips that I won last fall, the problem is that I have not taken any of these trips yet. One of them is booked for May of this year, and the second one I will not be able to take because of the accident that I had few weeks ago and injury (it is a ski trip, certificate is valid until April, I won't be well enough to ski yet). I am planning on calling the place and asking them if they could extend the certificate to the next year. The actual value of the first trip is about $2,000 less than what they sent me on the tax form. Anyway, it just seems strange that they want me to pay taxes on trips that I have yet to take. Any advise, please?
 
I don't know about paying taxes on trips you have not yet taken - as you may have already submitted affidavits and accepted those wins, so they could be considered as income for last year if you accepted them last year. Maybe you will have to check with a tax accountant.

About the ARV being higher than the actual value - I won a hotel stay a couple of years ago and I used the info in Q&A to document the actual market value (much lower) and was able to make the adjustment for my taxes. I requested, but did not receive, amended tax forms from the sponsor.
 
Thank you arrtup for finding the threads! I will call the agency that sent me the forms today and I will ask to lower the value.

I have won trips in the past and I always paid taxes after completing the trip, but I guess it can go both ways.
 
My tax lady told me it depends on what they send you for the 1099. Whatever year they send it you pay it, so I'm guessing that it depends on when they paid for it. If the company uses it on their taxes this year, you'll pay taxes on it this year too.
 
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