Comments on: Are Prizes and Raffles Taxable? http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 12 Mar 2010 06:49:22 +0000 http://wordpress.org/?v=abc hourly 1 By: Larry Seeley http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-405026 Larry Seeley Sat, 28 Feb 2009 20:12:14 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-405026 Can raffle tickets be included in gambling winnings if an investment was required in order to win? I won a $24,000 drawing at a local casino and received a 1099. In order to enter the drawing, I was required to gamble and accumulate entry tickets based on my volume of play. Can raffle tickets be included in gambling winnings if an investment was required in order to win?

I won a $24,000 drawing at a local casino and received a 1099. In order to enter the drawing, I was required to gamble and accumulate entry tickets based on my volume of play.

]]> By: dimes http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53577 dimes Tue, 12 Dec 2006 20:11:02 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53577 If the company withholds taxes on the prize, won't they send you a 1099-misc or something? I'm really curious as to whether or not I'll get a reporting form for the $100 I made as an election judge. They didn't take out any withholding or FICA on it, so I don't see any real reason to report it other than that I "should." If I get a form I will, of course, but if not, I'm not sure. I suppose technically I would be considered a subcontractor and should file a Schedule C, except that the amount of income is below the $400 filing requirement. Kay from dontmesswithtaxes could probably offer some excellent advice. If the company withholds taxes on the prize, won’t they send you a 1099-misc or something?

I’m really curious as to whether or not I’ll get a reporting form for the $100 I made as an election judge. They didn’t take out any withholding or FICA on it, so I don’t see any real reason to report it other than that I “should.” If I get a form I will, of course, but if not, I’m not sure.
I suppose technically I would be considered a subcontractor and should file a Schedule C, except that the amount of income is below the $400 filing requirement. Kay from dontmesswithtaxes could probably offer some excellent advice.

]]> By: JLP http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53575 JLP Tue, 12 Dec 2006 19:26:54 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53575 Sadhu, <i>Do people actually report prizes won in raffles?</i> They better. Especially if the company withholds for taxes on the prize. Sadhu,

Do people actually report prizes won in raffles?

They better. Especially if the company withholds for taxes on the prize.

]]> By: sadhu http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53573 sadhu Tue, 12 Dec 2006 19:15:29 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53573 do people actually report prizes won in raffles. it's like reporting tips I guess; honor system. Or how about paying state taxes on items bought from out of state sellers; does any one actually pay that? I like the canada systen. do people actually report prizes won in raffles.
it’s like reporting tips I guess; honor system.

Or how about paying state taxes on items bought
from out of state sellers; does any one actually pay that?

I like the canada systen.

]]> By: Traciatim http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53565 Traciatim Tue, 12 Dec 2006 17:43:31 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53565 You should all move to Canada. Prizes are not taxable here, including the lottery. If you win 10M, you walk away with 10M. You should all move to Canada. Prizes are not taxable here, including the lottery. If you win 10M, you walk away with 10M.

]]> By: kurt http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53550 kurt Tue, 12 Dec 2006 15:13:25 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53550 Harold, if you itemize, couldn't you donate it to charity and receive a deduction in the amount of the line 21 item? I'm not a tax adviser! Harold, if you itemize, couldn’t you donate it to charity and receive a deduction in the amount of the line 21 item? I’m not a tax adviser!

]]> By: harold http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53546 harold Tue, 12 Dec 2006 14:17:17 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53546 That actually is precisly my problem. It is a prize that I have no use for and I highly doubt that I could resell it for the $600 stated value. That actually is precisly my problem. It is a prize that I have no use for and I highly doubt that I could resell it for the $600 stated value.

]]> By: Leslie Turek http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53538 Leslie Turek Tue, 12 Dec 2006 12:38:08 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53538 Depending on your bracket, your taxes could be several hundred dollars. Not trivial. Suppose you didn't even want the item. Suppose you turned around and immediately resold it, but could only get $300 for it. Would that be evidence that the correct valuation is $300, nor $600, and could you then pay taxes on only $300 of value? I have a tendency to stay out of raffles and drawings unless the prize is something that I really want and would be willing to pay [the taxes] for. Depending on your bracket, your taxes could be several hundred dollars. Not trivial. Suppose you didn’t even want the item. Suppose you turned around and immediately resold it, but could only get $300 for it. Would that be evidence that the correct valuation is $300, nor $600, and could you then pay taxes on only $300 of value?

I have a tendency to stay out of raffles and drawings unless the prize is something that I really want and would be willing to pay [the taxes] for.

]]> By: John M http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53430 John M Tue, 12 Dec 2006 02:59:06 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53430 If you won a prize in your company drawing that was worth $50.00 would you be required to report it? If you won a prize in your company drawing that was worth $50.00 would you be required to report it?

]]> By: The Sarcasticynic http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/comment-page-1/#comment-53419 The Sarcasticynic Tue, 12 Dec 2006 01:17:45 +0000 http://allfinancialmatters.com/2006/12/11/are-prizes-and-raffles-taxable/#comment-53419 Humbug!!!!!! Humbug!!!!!!

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