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Thread: Sweeping and Taxes

  1. #11


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    Re: Sweeping and Taxes

    Quote Originally Posted by pmeek View Post
    Quote Originally Posted by LIDARKSIDE View Post
    All prizes are required to be reported on your tax return. The IRS only requires that the sponsor report everything $600+. For anything under that amount, you are on the honor system in reporting it on your tax return.

    You report the fair market value (FMV) of a prize, not the approximate retail value (ARV). However, you must have documentation showing the true value of the prize. With trips, you have to get the actual airfare for the flight and seat you are booked in, hotel rate, etc.

    You only report the prize on your tax return for the year you receive your prize.

    The IRS' site has information on this, or you can call them with questions.
    This is not necessarily true. I won an Alienware computer at the end of December 2006 from Verizon. I received the computer and a 1099 for 2006 in January of 2007. I also won $1000 from Swiffer at the end of December 2006, the check and the 1099 for 2006 also arrived in January. It's just like wages that are earned in December that you may not get until January of the next year.
    I got this information directly from the IRS. Per the IRS, you go by the date you receive the prize not when you win the prize.

  2. #12


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    Re: Sweeping and Taxes

    Oh boy, now I'll have to go thru everything I won in 07 (what a pain!!). I was already dreading getting my stuff together for taxes. I do have a guy who does our taxes (thank goodness). I wouldn't even attempt to do them on my own - with my mad math skills (NOT!!).

  3. #13
    blackleatherrain's Avatar

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    Re: Sweeping and Taxes

    "I got this information directly from the IRS. Per the IRS, you go by the date you receive the prize not when you win the prize.
    This is correct, and I have affirmed the same with my tax gal.

  4. #14
    Sweepstakes Plus Member anikka's Avatar

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    Re: Sweeping and Taxes

    Quote Originally Posted by Wolfie View Post
    You will receive a 1099 for anything over $600. One important thing to remember is that 1099's do not have to be mailed out by 1/31. So, it is important to keep track of what you have received and what you are still waiting on.

    Technically, you should be reporting all your wins regardless of the value. Whether you do or not is up to you.

    Hope that helps.
    Is there a date 1099's have to be sent out by? I'm waiting on 2 and will do my taxes as soon as the are received. I'm hoping it's sooner rather than later!

  5. #15


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    Re: Sweeping and Taxes

    When is 1099 and cost basis information mailed out?

    1099's are mailed yearly by January 31st. Cost basis statements are usually mailed by the last week in February.


  6. #16
    3mnkids1's Avatar

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    Re: Sweeping and Taxes

    Im waiting on 2 also. I hope they get here soon.

  7. #17
    hitthegroundboys's Avatar

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    Re: Sweeping and Taxes

    :crazytongue: WOWW SA team AWESOME questons!!! Thanks Ms ANNIKA for starting this BALL off. Alot of info I thought I knew I had WRONG. Im def chatting up my H & R block mate. She told me prizes over 1.000. If its $600.00 SHE gets to redo my TAXES for the last 6 years. lol and I also am going to be very careful now like above which I enter. Ive got a LIST going no BRIDAL... No over 600.00 unless I really want it... :laughing:

  8. #18


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    Re: Sweeping and Taxes

    I would never use H&R Block to do our taxes. You wouldn't believe how many H&R Block tax returns have to be redone by certified CPA's/accounts to correct all the errors they make. I know some people who have had H&R Block horror stories.

  9. #19
    hitthegroundboys's Avatar

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    Re: Sweeping and Taxes

    :scratch:I wonder if the TAX value veries from STATE to STATE. I do live in three differant STATES. My homebase, My vacation home then another where we often do law enforcement training a few times a year . :scratch:

  10. #20


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    Re: Sweeping and Taxes

    what is a cost basis statement?

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