WWTBAM-PI! Tax Question

[hightown]

Hi Lori! Saw this thread come back up and of course had to read it. Was fun having you and other disers there. In May we'll have to try to get you or the girls in the hot seat! Wouldn't that be fun!

Disney sent me my 1099! They valued the prizes at $647. That was the jacket, shirt, hat, medallion, lanyard and 15 pins. The cruise will be taken this year and I'll have to deal with the 1099 on that next year. ouch but still in the long run cheaper than if I'd paid for it all on my own. Definately worth it.

Disney probably only has to do a 1099 if the value is over a certain amount. Probably $500. It's like a casino, you can win up to a certain amount and no 1099.

 

[seashoreCM]

Normally you deduct your state tax withholdings and include as income your state tax refund.

If you do not itemize one year or if you were subject to alternative minimum tax one year, the state tax refund based on those withholdings and arriving in your mailbox or bank account the next year is not included in income.

If you can demonstrate that the prize merchandise could have been readily purchased for less including by wheeling and dealing elsewhere, you may use the lesser price as the taxable value. Even saving newspaper ads will suffice. If you sell the item quickly to a disinterested third party, namely not to a friend or relative, you can use the net proceeds as the taxable value.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[WEDWDW]

So,you only have to pay taxes if you win enough for Disney to send you a 1099?Was the Cast Member correct and the post quoting the IRS website incorrect?Thanks.

 

[Lori-n-NY]

Hi Sharon,


I hope you and Callie enjoy the cruise. Corey and I will be waiting to see you at BWV when you get there. I'll chat with you soon.

I hope to make the hot seat in May but not on Star Wars weekends. I have no clue about any of that stuff. I would have to rent all the movies and read everything I could find just to know who some of the people are. I never really got into Star Wars ...sorry all you fans of SW out there.
Have a great night guys,
Lori

 

[WEDWDW]

I contacted WDW and there is no tax liability until the cumulative value of prizes won is $600.00 or higher in a tax year.I do hope I incur some tax liability during my July trip-I want to win the Disney cruise!

 

[SlightlyGoofy]

WEDWDW, you are a true blue American. Looking forward to paying more taxes, huh? Me, too. LOL

Lori-n-NY, I was there last year on SW weekend and I took my time answering the questions as I did NOT want to be in the hotseat during the SW version. Now, Star Trek might have been a different thing altogether. LOL BTW, I saw severall people who were tied for the top spot answer some awful easy questions with the wrong answers. I am thinking that they did NOT want the hot seat right then either. The young man who did make the hot seat got pretty far as the questions were not that hard at all. I think I could have gone aways myself.

Slightly Goofy

 

[corndog]

I contacted WDW and there is no tax liability until the cumulative value of prizes won exceeds $600.00 in a tax year.

That is not correct. Technically, if you find a penny on the ground you are supposed to declare that as income. Disney is only obligated to report your winnings to the IRS if they reach $600. You, on the other hand, are obligated to report any amount you receive (or find) to the IRS as ordinary income on your taxes.

/Yes, I am a CPA.

 

[jenr812]

That is not correct. Technically, if you find a penny on the ground you are supposed to declare that as income. Disney is only obligated to report your winnings to the IRS if they reach $600. You, on the other hand, are obligated to report any amount you receive (or find) to the IRS as ordinary income on your taxes.

/Yes, I am a CPA.

After reading thru this thread, I was about to post the same info, minus the CPA

 

[jenr812]

PS I'd love to incur some taxes on my trip LOL

 

[WEDWDW]

corndog-thanks for the information.Do I have to re-file my tax return and include the $67.50 worth of prizes I won at Walt Disney World as income or can I just return the prizes to Walt Disney World?Thanks for your help.

 

[keddy]

1

 

[pirateparrot]

So,you only have to pay taxes if you win enough for Disney to send you a 1099?Was the Cast Member correct and the post quoting the IRS website incorrect?Thanks.

Technically no. The cast member was wrong.

Even if you win $1 you are supposed to declare it but anything under $600 never gets reported to the IRS so most people don't and the chances that this would ever become an issue is near zero.

 

[leo178]

I have been fortunate to win the WWTBAM attraction twice in 13 months. (#43 and #79). So you can see about how many winners they have a year. Congratulations to Hightower on his win. I took my cruise just last year in May 2004. It was really fun. The earlier win was for a trip to NYC, and that was equally fun. I did that for my 50th B-day.

My family is all over 18 years, so we went to the adult beach on the Island. The snorkeling was much better, we had a close encounter with a barracuda. Be sure to make reservations for the adult resturant as well.

You are correct, they will send a 1099 for the Cruise about 5K fairly late next spring. Have fun-and wish me luck as I try wwtbam again next week. It is so fun to play the game, even if you don't win anything (and I've done that a few time too!!)

 

[disneyaggie]

I REALLY think that stinks. If it was a cash prize, I could certainly understand the government taking money - but no money changes hands. There's NO need to tax a dang cruise!

Sorry for hijacking the topic and insterting $.02 that NOBODY asked for!

I totally agree!

 

[disneyaggie]

We were at WWTBAM on New Years Eve for 2 shows. They said someone had won the cruise the day before. How often is someone winning the cruise?

Help! What does WWTBAM stand for?

 

[cra-z-4-dizney]

Help! What does WWTBAM stand for?

Who Wants To Be A Millionaire-Play it! It is located at MGM Studios. You have got to try it if you never have~~it is a blast!!!

 

[disneyaggie]

Who Wants To Be A Millionaire-Play it! It is located at MGM Studios. You have got to try it if you never have~~it is a blast!!!

Thanks! And I am glad to hear it is so much fun!

 

[hightown]

WOW Leo! Two wins! I was #97 on 10/16 and there was a new diser that posted he just won and was number 106. So 9 winners in 7 months.

Good luck on your trip next week.

We'll be on the cruise 5/12-15 and then two nights in WDW. We're working on getting dd (12) in the hot seat. Last trip she just wanted to do Millionaire all day. It was really fun. She got to #3. I got 1 a couple of times but it was at end of show. Who knows, you're proof that 'lightening strikes twice'.

Sharon