do i have to claim on my federal and Pa. state taxes. prize was worth almost $8400.00. I already paid the sales tax when I picked the machine up from the place I won it. Please help.
2007-02-04 07:54:43 · 10 answers · asked by BADGER 2 in Business & Finance ➔ Taxes ➔ United States
You paid the sales tax, but the value of the prize is considered income. And now you must pay income tax.
2007-02-04 08:03:11 · answer #1 · answered by crazydave 7 · 1⤊ 0⤋
Afraid so, friend. The 1099 tells you the amount you must report. One of the drawbacks of winning things. They normally are not worth anything close to the value you must claim on your taxes.
2007-02-04 08:01:06 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Yes. Anything that you receive a 1099 for is taxable.
For conformation of that, call 1-800-829-1040 or visit website:
www.irs.gov
2007-02-04 08:05:08 · answer #3 · answered by Pixie 7 · 0⤊ 0⤋
You have to claim whatever the 1099 says and pay taxes on it. Congrats on winning.
Don't listen to "Nette" because she's wrong.
2007-02-04 08:00:50 · answer #4 · answered by Dizney 5 · 0⤊ 0⤋
Yep, that's fully taxable as ordinary income. Claim it on the other income line on your tax return.
2007-02-04 07:58:17 · answer #5 · answered by Bostonian In MO 7 · 3⤊ 0⤋
Yep, completely taxable both state and federal.
That is why most people sell their "prizes", good ole' Uncle Sam ALWAYS gets his cut.
2007-02-04 07:57:56 · answer #6 · answered by Gem 7 · 2⤊ 0⤋
many a time, i have also received mails like yours. after few days, my PC was full of spam!!! these mails r just a way 2 leak your personal and imp documents, thats it... plz beware of all these kind of stuff, as i dont want u suffer the same...
2016-03-29 04:50:16 · answer #7 · answered by Whitney 4 · 0⤊ 0⤋
Yes, you have to pay income tax.
2007-02-04 08:00:02 · answer #8 · answered by Box815 3 · 2⤊ 0⤋
hope you have the proof you paid, you have to declare your winnings either way
2007-02-04 07:58:35 · answer #9 · answered by irish eyes 5 · 1⤊ 0⤋
No, you paid the taxes for it. Don't worry about it.
2007-02-04 07:58:51 · answer #10 · answered by Nette 5 · 0⤊ 6⤋