In response to a post in the comment section, I looked up the rules for these contests. I forget the name of the person who posted this, but he is correct about having to pay taxes on these if you win. These boxtops are valued from about $2000.00 to $5000.00 each and the rules, on 2 out of the three I entered, say the winner is responsible for the sales tax and maybe the income tax, also. I think that since it a donation of sorts, we wouldn't have to pay income tax, but it would have to be declared. This was a revelation to me and I won't be entering any more of these because I can't afford the taxes. This is a shame because it is a good thing for the schools.
Boxtops for EDuc.
- Thread starter beedyr
- Start date
Reply To This Comment - Topic: taxes Posted: Fri Sep 03, 2010 10:25 PM
bettyann54
just a thought, but who is responsible for paying the taxes on $11,500 for all those campbell labels? yourself or the school? not worth it if you are.
Meijer/Campbells - Labels for Education Back to School Sweepstakes New
(1) Grand Prize: 1,000,000 Campbells Labels for Education bonus point certificate to be awarded to the school noted on their entry, and a $1,000 Meijer Gift Card. (ARV $12,500.00). (10) First Prizes: 10,000 Campbells Labels for Education bonus point certificate to be awarded to the school noted on their entry, and a $100 Meijer gift card (ARV $215.00 each).
Restrictions : 18+ IL, IN, KY, MI or OH | Limit : 1 Per Person / Per Day | Added : 09-04-10 | Expires : 09-15-2010 | Hits : 125 | Rules
Entry Category : Daily Sweepstakes
2. CampbellsSoup.Com - Labels for Education Save Big. Dream Big. Sweepstakes
CampbellsSoup.Com - Labels for Education Save Big. Dream Big. Sweepstakes
(2) Grand Prizes: A Star-Powered Music Day at your school. Prize includes a half-day event including an artist appearance and experiential learning including learning about music industry and interaction with music industry executives. Prize will be awarded to the LFE eligible school of the winners choice. In order to receive prize, school designated by the winner must be enrolled in the LFE program. Approx. retail value (ARV): $20,000/each. (5) First Prizes: A Labels for Education 100,000 Bonus Label Certificate. Prize to be awarded to the LFE eligible school of the winners choosing. ARV: $1,150/each.
Restrictions : 13+ US | Limit : 1 Per Person / Email Per Day/a day is defined as the 24-hour period beginning at 12:00 AM ET and ending at 11:59:59 PM ET | Added : 06-01-10 | Expires : 10-31-2010 | Hits : 739 | Rules
Entry Category : Daily Sweepstakes
bettyann54
just a thought, but who is responsible for paying the taxes on $11,500 for all those campbell labels? yourself or the school? not worth it if you are.
Meijer/Campbells - Labels for Education Back to School Sweepstakes New
(1) Grand Prize: 1,000,000 Campbells Labels for Education bonus point certificate to be awarded to the school noted on their entry, and a $1,000 Meijer Gift Card. (ARV $12,500.00). (10) First Prizes: 10,000 Campbells Labels for Education bonus point certificate to be awarded to the school noted on their entry, and a $100 Meijer gift card (ARV $215.00 each).
Restrictions : 18+ IL, IN, KY, MI or OH | Limit : 1 Per Person / Per Day | Added : 09-04-10 | Expires : 09-15-2010 | Hits : 125 | Rules
Entry Category : Daily Sweepstakes
2. CampbellsSoup.Com - Labels for Education Save Big. Dream Big. Sweepstakes
CampbellsSoup.Com - Labels for Education Save Big. Dream Big. Sweepstakes
(2) Grand Prizes: A Star-Powered Music Day at your school. Prize includes a half-day event including an artist appearance and experiential learning including learning about music industry and interaction with music industry executives. Prize will be awarded to the LFE eligible school of the winners choice. In order to receive prize, school designated by the winner must be enrolled in the LFE program. Approx. retail value (ARV): $20,000/each. (5) First Prizes: A Labels for Education 100,000 Bonus Label Certificate. Prize to be awarded to the LFE eligible school of the winners choosing. ARV: $1,150/each.
Restrictions : 13+ US | Limit : 1 Per Person / Email Per Day/a day is defined as the 24-hour period beginning at 12:00 AM ET and ending at 11:59:59 PM ET | Added : 06-01-10 | Expires : 10-31-2010 | Hits : 739 | Rules
Entry Category : Daily Sweepstakes
curmudgeon
New member
I don't know the answer either. That said, I suspect you'd get the "credit" for the donation to the school,
as your the one that picked it. The actual tax writeoff will belong to the Company that donates the cash.
You received naming rights, but no money, therefor there's no no income tax liability for you. There's no
sale involved, therefor no sales tax is due. Does that make sense?
PS: There will be a tax liability for the gift card.
as your the one that picked it. The actual tax writeoff will belong to the Company that donates the cash.
You received naming rights, but no money, therefor there's no no income tax liability for you. There's no
sale involved, therefor no sales tax is due. Does that make sense?
PS: There will be a tax liability for the gift card.
lidarkside
Active member
Note in the rules:
"There is no cash value to individuals." (Pertaining to a donation prize)
You do not pay taxes on any part of a prize that is a donation to another party; and, since, the individual is not personally donating the money, there is no write-off to even bother with on their tax return.
Any verbage in the rules referencing responsibility for taxes would pertain to the portion of a prize that the individual themselves receives for themself.
I have won twice from Box Tops for Education for the school I support, and they didn't so much as make out a 1090 for either one.
The way it works is that they add the amount won to the school's account, the same account that accumulates the boxtops that are sent in.
"There is no cash value to individuals." (Pertaining to a donation prize)
You do not pay taxes on any part of a prize that is a donation to another party; and, since, the individual is not personally donating the money, there is no write-off to even bother with on their tax return.
Any verbage in the rules referencing responsibility for taxes would pertain to the portion of a prize that the individual themselves receives for themself.
I have won twice from Box Tops for Education for the school I support, and they didn't so much as make out a 1090 for either one.
The way it works is that they add the amount won to the school's account, the same account that accumulates the boxtops that are sent in.
Hi..lidarkside...I hope you are right. I've entered these before but never won. Did you win the large amt. ie $2000-$5000? Would be interesting to know if that works out to no taxes, also.
Hi Curmudgeon...Am I wrong that anything we win is not a sale but we still have to pay sales tax and declare it on our income tax whether they send a l099 or not, depending on our conscience?
Hi Curmudgeon...Am I wrong that anything we win is not a sale but we still have to pay sales tax and declare it on our income tax whether they send a l099 or not, depending on our conscience?
lidarkside
Active member
I won $1,000 both times. Actually, the school I entered for is the one actually winning the money.
You never pay taxes on something you did not receive. Think about it. It wouldn't make sense to pay taxes on something you did not receive. The money is awarded to the school, not the entrant.
Plus, as I pointed out per the rules, "There is no cash value to individuals"; which means there are no taxes to pay, because the entrant did not receive anything of value.
All prizes a person wins and does receive are subject to "Other Income" on their tax return. It's considered income.
Sales tax refers to such prizes (for example, a trip) where the winner will or may incur sales tax on certain purchases or services. It's simply a clarification stating the the winner is responsible for such and not them--it further covers their butt legally.