Taxes

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kashteen1

Member
The only bad thing about winning a decent prize is TAXES! I won a car a little over a year ago. I was told because I'm on disability + SSI that my taxes shouldn't be too bad! Maybe I'd just owe a few grand, WRONG. Try at least $7,000.00. I attempted to call the IRS & see if I could work something out as I'm on disability, talked to 3 different people, got 3 different run-around stories & how I don't owe anything, YET (Its not April 15th) I'm about ready to pull my hair out! The car I won wasn't worth what my 1099 stated. My older car was a 2001 fully loaded, but w/lots of miles I had 30 days to get rid of it & donate it. Great I found a woman who's trying to turn her life around & needed transportation. Gave her my 2001 vehicle.
For a donation it Must go to a charity, not an individual, I got screwed Again. :cussing:
 
I would dispute the 1099 if it does not match the value. As for donating the car I don't think much can be done there. A good tax attorney or accountant should be able to figure this all out for you.
 
I would dispute the 1099. Upon receipt of the car, you should have documented sale prices off the internet for the exact same car/features/options. You would have needed that as proof to the IRS if the company doesn't change the 1099.

As for disability, since they don't require that you pay taxes unless your income for the year hits $25,000+, you should have added your disability income to the retail value of the car and check what tax bracket the total would put you in to determine your tax responsibility. Only 85% of your disability income can be taxed, and I believe the rest is at full taxation. There's no other leeway given on taxes for being disabled.

For donations, it has to be a recognized charitable organization that you donate to like a 501(c).
 
oohhh ... I thought she said "Texas" .... :laughing:


but I see our resident licensed tax consultant and IRS enrolled agent LIDARKSIDE has it all handled :crazytongue: :crazytongue:...

:laughing: :laughing: :laughing:
 
Well, I should know about disability since I am disabled and all the information is in the books Social Security sends to us decrepit part of society! As for the IRS, anyone who can read can get all the same info right from their site.

Plus, since when does a license make someone know everything! I think there's more licensed quacks then anything else out there. :error:
 
:wave: The $10K I won last year was only taxed at $105...which is 10% of the total prize. I am on disability as well...and the IRS agent I spoke with explained the sweeps taxes to me, for someone on disability. So, I only have to pay the IRS $105 for the winnings...which is not shabby at all.
 
The bottom line is asking questions here about taxes... is a great starting place for general information but should NOT be relied on for any of your tax needs. When hit with something you don't know, always, ALWAYS, consult a tax professional and share your entire tax situation with them. It may cost you a few dollars up front, but may save you lots in the end.

More importantly, consult the tax advisor before accepting any big win if you are worried about tax implications.

Best of luck to everyone.
 
You should, though, make sure you are in the know before going to any accountant to handle your taxes on any prizes. Make sure you read up on and understand what is required by the IRS by going to their site and reading up on taxes on prize wins.

Since most accountants have never handled sweepstakes winnings, no matter how good they are, they will usually just add it in under "Other Income" without any adjustments. You need to inform him/her of any adjustments you are making on any prizes, with documentation to back it up, and direct them to double check the information for themselves from the IRS.

We did this with our accountant some years back. She looked it up for herself and confirmed the information I gave her.

No professional can know everything off the top of their head. They all have to reference information.
 
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