Need to pay taxes on your referrals to DVC

[JimC]

It is income and if it is over $600 Disney is required to report it to the IRS. The taxpayer is required to report it whether Disney does or not.

 

[TnRobin]

Actually the IRS views it all as income regardless of whether it is over $600. It is just that Disney is only responsible to issue 1099s if they pay you (cash or merchandise) a total which is equal to or greater than $600.

 

[TnRobin]

Oops Jim beat me too it

 

[dismem98]

I've referred people who bought in and never knew they gave referrals. Must live in one of those states where they can't do it. They could send me something though like even a note saying 'Thank You'.

 

[DebbieB]

Hadn't thought about it but it makes sense that you would be required to include it income. When a bank gives you a set of glasses for opening a checking account they usually also issue a tax form for the value of the glasses. Nothing is "tax free".

I noticed an ad in our newspaper for a bank where you got a vase for opening a CD. In the fine print, it said you would get a 1099 for $25.

 

[tjkraz]

How long does it take to get the voucher, referred my mom in Jan of this year and they already paid the down payment? How long after sending in the voucher do you get the Mickey money?

Referral reward notices are not sent out until after the formal closing has occurred.

 

[ohiominnie]

BTW - We don't have the referral problem here in Ohio. DVC can't give us anything but a pat on the back and a hearty "thank you" whenever we refer new members. And so far the IRS hasn't figured out a way to tax that.

HUH? We've referred several new ppl over the course of the 4 years we've been members and we've always gotten the referral bonuses. The most recent being someone who joined in late December, closed in January, and I have the Disney Dollars right here near me.


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[LAWalz23]

Thanks tjkraz, the official closing is May so I guess it will be after that.

 

[CarolA]

Are you kidding me???

And what exactly are you supposed to pay the tax portion with, pressed pennies??

Some things are beyond comprehension.

Don't blame Disney. They are just following the law. You received something of value... In the eyes of the IRS that is what counts.