1099 Question

[mmartin030]

I won the Nicorette/Facebook Mini Moments contest last year and it was for a trip to L.A. to meet and greet with Dr. Drew, a FLIP Camcorder and $500.00 check and some boxes of Nicorette. I ended up missing the trip because of the fiasco with the check being cashed (they sent it literally the day before the trip, on a Friday, and noone would cash it and at the time, I had 0.00 in my bank account and had NO money for this trip and didn't want to be in L.A. without even money to eat with!). The ARV for the whole prize was $5000.00. But considering I didn't even go on the trip, why am I getting a 1099 for "other income" for $5000.00? I've been a stay at home mom for the past 9 years, and haven't even DONE a tax return in years! I don't mind paying taxes (um, just kidding) for things your suppose to pay on but I didn't go on the trip. Shouldn't they make the 1099 for what I REALLY RECEIVED? Any response would be appreciated as this is my first year of sweeping and $5000.00 is alot of taxes I would imagine! What do I do?

April

 

[pmeek]

:sunny: You need to contact them and ask them to adjust the 1099. Did you receive the airline tickets? Even if you didn't use them for LA, you may be able to use them to go someplace else. The tickets would have been an expense to them and depending on if you called and cancelled,they may have had to pay for the hotel room. Hope it all works out for you.

 

[allwedoiswin]

APRIL-
I'm sorry you were unable to take the trip you won. Most trips are "bundle" prizes & by accepting it, you are accepting the entire package. This is usually stated in the rules, but if not, it should have been understood by the disclaimer on the affy. If you have cashed the check, you have made yourself doubly responsible for all taxes. Depending on your personal situation, taxes on this prize could run $1000-$1500. You can work with the sponser but they are under no legal obligation to change the conditions of the prize-they have honored their legal commitment to you. Even if you are successful in attaining an adjustment on the 1099, it could take months & unfortunately, April 15 is rapidly approaching! What to do? I would contact a good tax advisor & chalk this up as a learning experience. Probably not what you would like to hear, but knowledge is a powerful thing. Good luck whatever you decide to do.