My son hasn't won yet, but the sweepstakes involves traveling to Utah from Washington (we're in the U.S.). We'll have to stay in a hotel and will probably be traveling in a limo if he wins. It's a Disney sweepstakes sooo........And how much do you think it might actually be on taxes???Please Help!!!
2006-12-19 14:54:43 · 7 answers · asked by Cody S 1 in Business & Finance ➔ Taxes ➔ United States
25% of the cash value will need to be paid as taxes. Disney will probably send you a form (1099C) which state the value of the trip. Maybe Disney will be nice and include some extra $ for taxes, but don't hold your breath on that.
2006-12-19 15:04:28 · answer #1 · answered by KC 4 · 0⤊ 1⤋
I wouldn't do any of the traveling and expense on a chance that you win the sweepstakes. That sounds a little like a scam? It might depend on if you have to put your name on as a legal guardian. Then you might be taxed on it. Otherwise I think it might fall under the gift act if it is under 12,000. You might want to check with them on the details before you except the prize.
2006-12-21 04:39:37 · answer #2 · answered by toddrws 1 · 0⤊ 0⤋
Your 15 year old minor son probably can't win a sweepstakes . You have to be of legal age in all states.
2006-12-19 17:07:25 · answer #3 · answered by Dumb Dave 4 · 0⤊ 0⤋
He would be taxed at whatever his 2006 "earnings" were.
I am concerned, though, that since he is a minor - and minors can't enter into a legally binding contract - is he even eligible to win? Of course, I didn't see the entry form - so there could be something in effect for this contest I don't know about.
Actually, I hope he does win - It's always nice to have someone win who doesn't have a huge bank account or the ability to travel at will!
2006-12-19 15:07:50 · answer #4 · answered by kids and cats 5 · 0⤊ 1⤋
Your 15 year old is old enough to have his first job and therefor old enough to pay taxes. If he wins a sweepstakes he will pay the same amount of taxes as you would.
2006-12-19 15:02:54 · answer #5 · answered by freakyallweeky 5 · 0⤊ 2⤋
It depends on how the prize is awarded. If the prize is awarded to you, then it is included in your income. If the prize is awarded to your son, then he will pay the taxes. Disney will ask you to fill out a W-9 form to get your or your son's Social Security Number.
2006-12-19 15:39:14 · answer #6 · answered by Steve 6 · 1⤊ 1⤋
Only if your son recieves a 1099...........if he doesn't, then forget it. Don't worry about it. If he does recieve it, it's about 25% of the value, depending on the value of the trip.
2006-12-19 15:19:22 · answer #7 · answered by bichebbani 2 · 0⤊ 2⤋