I have received my W2 Form from work weeks ago and am all set to pay my taxes.
The only problem is I don't know how to declare the prize I won from Dell. Are they supposed to send me some type of form? Or is it my responsibility to declare the laptop and the estimated cost?
Because I won the laptop as a prize I have only a rough assumption as to what it costs. Is this good enough? Or was I supposed to get some tax papers from Dell?
Please help...
2007-01-25 09:52:20 · 5 answers · asked by Justin P 1 in Business & Finance ➔ Taxes ➔ United States
If the prize was over $600 then they should send you a 1099 form to file with your taxes. Since it should be over $600 you would have to find the Fair Market Value when you received it or use the ARV when you won the prize. You add this as income to your taxes. If you haven't gotten the 1099 from the sponsors of the computer you won, you really should call them and ask for one. If they filed with IRS and you don't file you could get audited and have to pay fines.
Oh and congrats on your win!
2007-01-25 10:02:38 · answer #1 · answered by ♥ Mary ♥ 4 · 1⤊ 1⤋
Who gave you the prize is the question that must be answered. The firm or person that gave you the prize may report this as miscellaneous income on IRS form 1099. The 1099's have a due date of 02/28/07. You may have to file an amended return or add the amount to your 2007 income. The treatment of this prize depends upon your income.
2007-01-25 10:03:04 · answer #2 · answered by david42 5 · 1⤊ 0⤋
Yes, if you win anything over a certain amount, you have to pay taxes. Did Dell (whoever) have you fill out a tax form when you won? Go to IRS.gov and check into this. I think they also have a toll free line you can call for some guidance.
Congrats on the prize.
2007-01-25 10:02:05 · answer #3 · answered by Anonymous · 1⤊ 1⤋
If Dell asked you for your SSN, they should be sending you a 1099. 1099s don't have to hit the mails until Feb 15th so you should probably wait until March 1st before you contact them about the 1099. If they didn't ask for your SSN, you should claim the laptop at its estimated street value when you received it.
2007-01-25 10:03:18 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋
I would check the dell site and get the value from them. You could also claim it as a used item depending on how old it is ie model 2005, 2006 and find if their is a newer model of the lap top you have and there claim it as used.
2007-01-25 10:00:40 · answer #5 · answered by marens_2000 1 · 0⤊ 2⤋