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whiskeyguy
January 28th, 2008, 11:27am
I'm pretty new to this, and definitely new to the tax aspect of entering sweepstakes. The only prize that I won in 2007 had the ARV value of a little over $600. Now, I did receive the affidavit and was required to have it notarized and all that, but is this something that they would HAVE to report to the IRS or (if not) would be likely too? I have not received a 1099 from them yet, and while the taxes on $600 won't be a whole lot, I just want to know if I should wait to fill out my tax returns until I get it? Any advice would be helpful... like I said I'm pretty new at this. Thanks!

cgroverla
January 28th, 2008, 12:10pm
You do not have to wait for the 1099 to file your taxes. Put the value of your win on Line 21 of Form 1040 "other income" with the notation "sweepstakes win" or something similar to that.

barbs
January 28th, 2008, 12:25pm
Companies, by law, have until the 31st to mail out 1099's. I have rec'd some as late as the middle of Feb.

I'd just wait for a while.

(And you have to report all sweepstakes winnings, whether or not they send a 1099!)

retrobruce
January 28th, 2008, 12:47pm
Companies, by law, have until the 31st to mail out 1099's. I have rec'd some as late as the middle of Feb.

I'd just wait for a while.

(And you have to report all sweepstakes winnings, whether or not they send a 1099!)

This is important. A $100 win still needs to be reported. A $25 win still needs to be reported.

ALL wins need to be reported.

/your mileage may vary

cubhill
January 28th, 2008, 5:57pm
Does the 1099 come from the Company who sponsored the contest or does it come from the government? I also am waiting on a 1099 and the company that held the contest is in Canada. Thanks for any help.
Jo

caseycupcake
January 28th, 2008, 6:18pm
Does the 1099 come from the Company who sponsored the contest or does it come from the government? I also am waiting on a 1099 and the company that held the contest is in Canada. Thanks for any help.
Jo

The 1099 will come from the company or judging agency. If you won something from a canadian sponsor, you will NOT recieve a 1099. Also, they do not report wins to the IRS. You are responsible for reporting your wins to the IRS. When you send this info to them, you will be their only source of reporting.

jennem
January 29th, 2008, 12:18pm
This is important. A $100 win still needs to be reported. A $25 win still needs to be reported.

ALL wins need to be reported.

/your mileage may vary

Actually, I do think there is a minimum--it's either $5 or $10.

havinfunyet
January 29th, 2008, 12:38pm
What if your employer gives you the wrong amount on yout 1099 my DH dumba88 boss put 1100 more on it than he was supposed to I thought I was out from under his thumb but everytime I turn around there he is again..
I know if I call him he will say it is right but I KNOW it is not I have record of all my deposits will it make a difference ? I need my refund this year to pay for my sons school stuff and now he is showing $3100 I didn't pay taxes on. He is a punk :) Venting thanks

NetworkSweeper
January 29th, 2008, 12:45pm
Actually, I do think there is a minimum--it's either $5 or $10.

I've checked and can't find a reference for this. Can you find it? People need to know so they report all winnings. We don't want anyone to do the wrong thing based on our opinions.

retrobruce
January 29th, 2008, 12:47pm
What if your employer gives you the wrong amount on yout 1099 my DH dumba88 boss put 1100 more on it than he was supposed to I thought I was out from under his thumb but everytime I turn around there he is again..
I know if I call him he will say it is right but I KNOW it is not I have record of all my deposits will it make a difference ? I need my refund this year to pay for my sons school stuff and now he is showing $3100 I didn't pay taxes on. He is a punk :) Venting thanks

For sweepstakes wins, at least, you can report different than the amount on the 1099. If you can DOCUMENT that the items won are available to you for less than they say on the 1099, you can adjust it. Its buried in the IRS rules somewhere.

I dunno about adjusting what employeers say.

disentangling
January 29th, 2008, 1:16pm
I read that when you are claiming your sweepstakes wins on your taxes you can use the "fair market value" price rather than the ARV listed. Does anyone know about this? I won a samsung TV that has an ARV of $1800, yet it sells for around $1200 at local retailers......

margarita_mama
January 29th, 2008, 1:51pm
I read that when you are claiming your sweepstakes wins on your taxes you can use the "fair market value" price rather than the ARV listed. Does anyone know about this? I won a samsung TV that has an ARV of $1800, yet it sells for around $1200 at local retailers......

The ARV could have been right on target at the time the sweeps was offered.
That is when you should obtain your documentation. However, you can try submitting the FMV based on documentation that you can find now, and see if the the IRS accepts it. More than likely they will, but I'm not an IRS employee either.
In the future, get your documentation together at the time of the win.
You don't send your documentation to the IRS with your tax forms, though. Keep the documentation for your records in case they do question it.

jennem
January 29th, 2008, 2:07pm
I've checked and can't find a reference for this. Can you find it? People need to know so they report all winnings. We don't want anyone to do the wrong thing based on our opinions.

Last year, I didn't get a statement of interest from my bank, and when I called they told me it was because it was under $10 and I didn't need to report income under $10. Unfortunately, I don't have that in writing and never researched the statute, because it was my financial advisor/tax professional at my bank (WaMu) and I felt I could take their word.

cakbuck
January 29th, 2008, 2:24pm
Does anyone know if you can offset contest wins with gambling losses on your tax return.

samf36
January 29th, 2008, 2:33pm
What if your employer gives you the wrong amount on yout 1099 my DH dumba88 boss put 1100 more on it than he was supposed to I thought I was out from under his thumb but everytime I turn around there he is again..
I know if I call him he will say it is right but I KNOW it is not I have record of all my deposits will it make a difference ? I need my refund this year to pay for my sons school stuff and now he is showing $3100 I didn't pay taxes on. He is a punk :) Venting thanks

Take you last pay stub from the plac eof work and the w-2/1099 to a tax preparer and ask their opnion.

Skipper
January 29th, 2008, 2:34pm
Gambling losses can only ofset gambling winnings. Even then, losses can only be deducted as an itemized expense on schedule A, up to the amount of your winnings. See http://www.irs.gov/taxtopics/tc419.html

TES283
January 29th, 2008, 2:56pm
Sweep wins if it is a career can be offset by cost of postage, cost of notarizing the affidavit, Post cards for snail entry....

Remember you must have proof if audited.

ALL winnings must be reported.

luchar
January 29th, 2008, 8:20pm
Companies are required to report prizes awarded for $600 or greater - That being said, I would not wait for them - Regardless of what they do - you are still required to report your winnings - I know when it comes to the IRS I don't want to be thinking that 3 years down the line they could come knocking to say I owe money - Better to take care of it now.

whiskeyguy
January 30th, 2008, 1:49am
I am not worried about the IRS auditing me over $600... it would probably cost them more to run the audit than what they can recoup (and the $600 is the ARV... not the tax I owe on it). That being said, I am not above paying the taxes on the prize either. I do think the ARV was a little high, so what constitutes fair market value? For example, if I were to post the average cost of my prize(s) if bought on Ebay, would I be shooting low? I'm new at this tax deal, and more than likely I'll slap the stated ARV in the "Other" box on the form just so I can get my return sooner, but I figure there's nothing wrong with asking. Thanks for all the input BTW!

elittle2004
January 30th, 2008, 2:38am
I remember reading on the IRS website...that if a person is single, has no kids and is under the age of 65 that they only have to pay taxes if they make at least $8,450 in a given year.

whiskeyguy
January 30th, 2008, 3:01am
Well I am sure most of us here make over that amount... hell some of these guys might make over that on sweepstakes alone each year. After the cutoff (if it is $8500) you have to claim EVERY source of income. That's why the $600 will be taxed on top of my usual annual income.

retrobruce
January 30th, 2008, 7:37am
Sweep wins if it is a career can be offset by cost of postage, cost of notarizing the affidavit, Post cards for snail entry....

Remember you must have proof if audited.

ALL winnings must be reported.

I would be very careful with this advice. Consult a tax professional for this and any other advice. I've personally never seen anything that shows you could deduct anything for "sweeping" expenses. Would love to be proven wrong.