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Comments:
$16,500 for a three night trip to Vegas and tickets to a rodeo? I ll pass on this one. How do these people come up with such inflated valuations?
Posted by: bossy99 on May 26, 2025
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Depending on your tax bracket that's going to set you back about $5K in taxes. I can buy that trip for less than $5K.
Posted by: jetskipaul on May 27, 2025
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Taxes smaxes...ill take it
Posted by: Sparky317 on May 27, 2025
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So if you can buy the trip for less than $5K then that is what you pay taxes on, you just have to prove it if asked by IRS ... I have never paid what was stated on a 1099 unless cash or gift card, some of which I only paid tax on half of what the 1099 said. Just keep the documentation if questioned by IRS, and no, you don't need a corrected 1099 from the company you won from.
Posted by: BourbonDon on May 27, 2025
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I entered for a trip to London valued at $5k for 3 nights and airfare. That was 10 years ago about and I thought it was inflated. I won. I went and OMG, everything was included, tours, they took us everywhere, even off the beaten path like a Bike Tour of the Thames and a night out at a Restaurant/Bar that Prince Harry liked to hang at, all the food, and they even gave us money to spend for souvenirs. I think I spent $100 bucks. Best Time I Ever Had. so Maybe this is like that. Probably not though. Nothing that good these days.
Posted by: Daisylee on May 27, 2025
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Sorry above should have said $10k
But anyhow, how do you enter less than a 1099 states on your taxes? My tax preparer has never said I could do that.
Posted by: Daisylee on June 6, 2025
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For example, if your 1099 is for 10k and you have documentation it would cost you 7k, you put 7k on the other income line, and I write on the line FMV sweepstakes prize. You don't need to send your documentation, but keep it if asked for. You need a new tax preparer !
Posted by: BourbonDon on June 8, 2025
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But don't you have to send the 1099?
Posted by: Daisylee on June 8, 2025
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No, the IRS already has a copy of the 1099. I've been doing it this way for many years
Posted by: BourbonDon on June 9, 2025
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Good to know. I have always declared full value on big wins. No more!
Posted by: bossy99 on June 12, 2025
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