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View Full Version : No prize yet, do I still have to claim?


avongifts
December 26th, 2006, 7:25pm
Ok, I won a prize back in August and got an affy so I can claim it on my taxes. Well, I haven't received the prize yet. Do I still have to claim it if I don't receive the prize? I have contacted the person and she said it should have been sent out and she would call me back and it has been 3 weeks and no phone call from her. What to do?

PanamaKay
December 26th, 2006, 7:39pm
Have they sent you a Form 1099? This is the form the sponsor provides to the IRS informing them of your win and thus your income. If they did not send you a 1099, and they do not have to, unless it is over $600, then you don't have to claim. On the other hand, if you have a Form 1099 and received no prize, you have a problem.

CharmCity
December 26th, 2006, 7:45pm
If you don't receive your prize in 2006, you don't include its value on your 2006 1040. When (if? hope not!) you receive it in 2007, you claim its FMV as extra income on your 2007 1040. If it arrives this week, however, it's 2006 'income' and gets reported on your 2006 forms.

avongifts
December 26th, 2006, 8:09pm
Yes, I received and filled out the 1099 form. Thank you for all the information. This will help me.

dovie
December 26th, 2006, 8:26pm
Have they sent you a Form 1099? This is the form the sponsor provides to the IRS informing them of your win and thus your income. If they did not send you a 1099, and they do not have to, unless it is over $600, then you don't have to claim. On the other hand, if you have a Form 1099 and received no prize, you have a problem.

Legally, you have to claim all prizes, regardless of whether it is over $600 in value or if you recieve a 1099 or not. You have to claim the value in the year you receive the prize, not when you win it- if you are ever audited you can explain that although you recieved the 1099 you did not receive the prize yet. Some choose not to claim all of their winnings if there is not a paper trail, but legally you are supposed to claim the fair market value- if it is overly inflated you can either ask the sponsor to adjust or find a better price yourself at the time of the win and keep a record of that to send in. Hope you get your prize soon. :gvibes: :fairy2: :gvibes:

Melpomeme7
December 26th, 2006, 9:21pm
Yes, I received and filled out the 1099 form. Thank you for all the information. This will help me.


What you filled out was a W-9 form which gave your tax information. A 1099 form is only sent after the first of the year (just like your W-2 form) so that you can include it on your taxes. Also, a 1099 form is prepared and sent by the sponsor or whoever fulfills the prize.............it is not something you fill out and send back to them. You dont have to worry about it until after the first of the year. You should not receive a 1099 unless you actually receive the prize in 2006.

wackydackydoo
December 27th, 2006, 7:45am
First of all, the IRS requires that "ALL" prizes be reported as "other income" with or without a 1099.

Second, you report your prize(s) for the tax year you receive it in. If you don't receive your prize until 2007, then you don't report it until 2008 when you do your 2007 tax return. It doesn't matter when you receive your 1099.

Also, ARV's are inflated approximations. So, get documented proof of the true value of the prize to submit as "other income" and save it with a copy of your tax return. The IRS does not want copies of the documentation attached to the original, but you must save it in case of an audit.

wackydackydoo
December 27th, 2006, 8:51am
Yes, I received and filled out the 1099 form. Thank you for all the information. This will help me.

You must have filled something else out--the affy or a W9 form? You don't fill out anything on a 1099. A 1099 is the already filled out form with all the information that the sponsor reported to the IRS. A 1099, like all those you get from your bank, employer, etc., is just a form with the information needed for reporting on your tax return.