Originally Posted by merrickdb
See if points.com will agree to a fair market value (FMV) of $599 rather than $600. Winnings of $600 or more need to be reported on a 1099 MISC; winnings below $600 need not be reported. Even if they won't agree to that, you should be OK with not reporting the prize if you can show that the FMV of the prize is less than $600, perhaps by looking at eBay auctions of the certificates. Then again, $600 seems reasonable, if not low, for a week at a Marriott property, so you may have a tough time with that approach. It's been a while since I've taken a tax class, so you may want to check with your accountant.
See
http://www.irs.gov/instructions/i109...02.html#d0e653 for (a tad) more information.
-m
$600 seems reasonable for a week stay, and assuming 33% federal and state taxes, $200 is a bargain for a week stay (though not a bargain for a weekend where I can find cheaper stays through Priceline). It is just that I doubt I can take a week off sometime soon. I wonder if I can deposit my week and split it for two weekends.
Thanks to all for the information.