Tax Question

[SniperSB23]

Originally Posted by Scav

"The fair market value of prizes and awards (other then scholarships) must be included in gross income, therefore, TV giveaway prizes, magazine publishers prizes, door prizes and awards from employers are fully taxable.

It can be excluded from gross income if the prize/award is recieved in recognition of religious/charitable/scientific/educational/artistic/literary, you transfer the prize to a government unit, the recipient was selected without any action on his or her part to enter the contest or proceeding, the recipient is not required to render substantial future services as a condition for recieving the prize or award"

If it is considered a prize, you might be able to argue the bold.

It obviously isn't considered gambling winning, thus they are right about the losses. I just read that ALL those requirements have to met to be considered so the bold is garbage. I'll look into it more

Wow, that part in bold is interesting. I got a tax form in the mail so was planning on declaring it. I'll have to look into that and see whether there are precedents for not declaring something a prize on that basis. It would seem the majority or contests would fit that definition.

[Scav]

Originally Posted by SniperSB23

Wow, that part in bold is interesting. I got a tax form in the mail so was planning on declaring it. I'll have to look into that and see whether there are precedents for not declaring something a prize on that basis. It would seem the majority or contests would fit that definition.

You had to meet ALL those requirements, which is impossible, so you along with Port, are SOL.

[Scav]

Here is the thing though that is so sketchy, less then 2% of people in their respective cities get audited, and lets just say that 5k doesn't get reported, you are probably on the hook for 1k, and that is that, they won't even audit you, they will send you a letter saying "Um you forgot to claim this so you owe us this"

I would say with 100% certainity that people on here are not claiming EVERY ticket they cashed at the racetrack, which according to tax code, you are suppose to do.

Unless you making over 250k, where your chance of getting audited is alot larger....well, you get the point

[cal828]

Originally Posted by Scav

Here is the thing though that is so sketchy, less then 2% of people in their respective cities get audited, and lets just say that 5k doesn't get reported, you are probably on the hook for 1k, and that is that, they won't even audit you, they will send you a letter saying "Um you forgot to claim this so you owe us this"

I would say with 100% certainity that people on here are not claiming EVERY ticket they cashed at the racetrack, which according to tax code, you are suppose to do.

Unless you making over 250k, where your chance of getting audited is alot larger....well, you get the point

Just curious. Do betting services like youbet and others report your total winnings on a 1099 to the IRS or do they just report single winnings over $600?

[Bigsmc]

Originally Posted by cal828

Just curious. Do betting services like youbet and others report your total winnings on a 1099 to the IRS or do they just report single winnings over $600?

Only the W2G's

[Danzig]

saw turbo tax mentioned above....i highly recommend. i did my taxes last monday evening and already got state back, and will have (if it isn't there already) federal any day now....direct deposit baby.
it takes longer the first time you do it...but every year after that, it retrieves all your info, so no re-entering stuff.

i don't make a red cent, so sorry if it sounds like a commercial...but seriously, give it a try.

[Port Conway Lane]

Just to update and for those of you who may be as ignorant as I was of the tax laws I was assessed an interest penalty from the state of Maryland for $81 because I did not report the contest winnings. I was required to report those winnings when I received the check and pay the state an estimated tax. This could apply to gambling winnings as well.
Freakin thieves.

[SniperSB23]

Originally Posted by Scav

You had to meet ALL those requirements, which is impossible, so you along with Port, are SOL.

Yeah, I just read it on another webpage that you have to meet all of them. I figured it sounded too good to be true.

[Port Conway Lane]

Thank you both for the help. I called the irs after I posted and indeed it is considered a prize. Now that the irs has my phone # on caller id I think I'll report the winnings.

[Holland Hacker]

Since you received a 1099 the IRS already has record of you receiving the $, as they also got a copy (or shortly will) get a copy of the 1099. If the money is not reported as income on your return you will be getting a friendly reminder letter from the IRS that you left it off of your return.

Based on the fact that you say that you can not itemize, I think as everyone else has already said you are SOL.