$600 paid over 2 years & 1099
Nov 18, 2007, 3:03 pm
#2
Join Date: Mar 2004
Location: Florida
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I won $600 from Netwinner this year ^ and as I earn each $25 give card I request them. Currently it's taking about 75 days to process a win so if I request the $25 I have due it will hit $600 and they say it will trigger the 1099. Clearly I won't get any payout into 2008 for several of the prizes. So you savvy winners can the 1099 kick in before you receive the prize?
I'll give it a stab anyway. Someone correct me if I've got this wrong.1099s are based on the amount of cash (or the ARV of a prize) you have actually received in your hot little hands by Dec. 31. So if you win a prize today, but don't receive it until Jan 1, the value will count toward 2008 taxes, rather than 2007 taxes.
So if it takes 75 days to convert your Netwinner points to a gift card, you wouldn't actually receive that gift card until the end of January, right? In which case the value ought to go toward 2008 taxes. If, however, Netwinner gets efficient and you receive the card before Dec. 31, pushing your total to $600 actually received in this year, then yes, it will trigger a 1099.
Nov 18, 2007, 3:12 pm
#3
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Actually flyingmama might be right but might not. I thought I read somewhere that someone won a car in X year & it wasn't delivered until Y year, but they still got stuck w/ the 1099 in X year. I'd check w/ your accountant.
Cheers.
Cheers.
Nov 18, 2007, 3:22 pm
#4
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This is the premise that NetWinner is using and sure want to get a clear answer before I cross the magic threshold. I would interested to hear from former winners of other contests how it was handled. I would also be concerned with the current sluggish pace of kicking out gift cards a 1099 might not appear until it was months late too.
Nov 18, 2007, 3:24 pm
#5
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Even though I don't play Netwinner, I think I understand the question ... but I could be wrong I'll give it a stab anyway. Someone correct me if I've got this wrong.
1099s are based on the amount of cash (or the ARV of a prize) you have actually received in your hot little hands by Dec. 31. So if you win a prize today, but don't receive it until Jan 1, the value will count toward 2008 taxes, rather than 2007 taxes.
So if it takes 75 days to convert your Netwinner points to a gift card, you wouldn't actually receive that gift card until the end of January, right? In which case the value ought to go toward 2008 taxes. If, however, Netwinner gets efficient and you receive the card before Dec. 31, pushing your total to $600 actually received in this year, then yes, it will trigger a 1099.
I'll give it a stab anyway. Someone correct me if I've got this wrong.1099s are based on the amount of cash (or the ARV of a prize) you have actually received in your hot little hands by Dec. 31. So if you win a prize today, but don't receive it until Jan 1, the value will count toward 2008 taxes, rather than 2007 taxes.
So if it takes 75 days to convert your Netwinner points to a gift card, you wouldn't actually receive that gift card until the end of January, right? In which case the value ought to go toward 2008 taxes. If, however, Netwinner gets efficient and you receive the card before Dec. 31, pushing your total to $600 actually received in this year, then yes, it will trigger a 1099.
Nov 18, 2007, 8:07 pm
#6
Join Date: Mar 2004
Location: Florida
Posts: 2,872
Sharon is correct that you probably need to consult a tax expert to be sure. If it were me, I would go by the actual date the cards are issued to determine what year they are taxable in... but I'm not a tax expert or an accountant, so take my advice for what it's worth, LOL.
Nov 19, 2007, 3:49 pm
#7
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Sharon is correct that you probably need to consult a tax expert to be sure. If it were me, I would go by the actual date the cards are issued to determine what year they are taxable in... but I'm not a tax expert or an accountant, so take my advice for what it's worth, LOL.
thx.
Nov 19, 2007, 3:58 pm
#8
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A couple years ago I won a basket full of items including 2 bottles of alcohol and a nice brief case at a national meeting. Much (and I do mean MUCH) to my surprise a 1099 was turned in with an extremely inflated value for the basket. Obviously the company running the meeting had a huge mark up on those 'gift' items.
This was before the current TSA rules. I was able to take the liquor, but not the actual basket home as it was too big to be a carry on item and too fragile to be checked.
Had I known I would have declined the basket. I ended up paying taxes on the inflated value.
Lesson learned!
This was before the current TSA rules. I was able to take the liquor, but not the actual basket home as it was too big to be a carry on item and too fragile to be checked.
Had I known I would have declined the basket. I ended up paying taxes on the inflated value.
Lesson learned!