I have a stupid tax question

[Toby'sFriend]

I thought you meant they were taxing stupidity. What a great way to increase revenue!

I'll probably offend a zillion people with this - but that's what state lotteries are generally called: "The Stupid Tax."

 

[TheLionKing]

Toby'sFriend

I resemble that comment!!!!!

 

[CamColt]

Now Im real confused! I thought your reported winnings if it was cash and over 600.00.
Over the summer I won a Disney gift pack from a local radio station. Estimating the cost of everything in it I would guess its worth 100.00(pretty sad when I know the cost of all Disney souveniers ). So do I need to claim that?

 

[ryanpatricksmom]

I believe that the $600.00 comes into play because if the winnings are $600 or greater, the contest sponsor must report the winnings to the IRS. That does not mean that you are not obligated to pay the tax, it just means that you wouldn't get caught if you didn't.

 

[TheLionKing]

Originally posted by ryanpatricksmom
I believe that the $600.00 comes into play because if the winnings are $600 or greater, the contest sponsor must report the winnings to the IRS. That does not mean that you are not obligated to pay the tax, it just means that you wouldn't get caught if you didn't.

I think that statment hit the "nail on the head".

If they don't send you a 1099 form, then it was not reported to the IRS.