- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
taxes on winnings
Posted on 5/16/12 at 3:01 pm
Posted on 5/16/12 at 3:01 pm
My wife just informed me that she won free airline tickets and went and picked them up. THEN she told me she had to fill out the tax information for them valued at 4k!
Here is the kicker they only give her until friday to book the damn things. Am I going to get hit with a 1k tax bill assuming 25% bracket on them for something I might not even use?
Here is the kicker they only give her until friday to book the damn things. Am I going to get hit with a 1k tax bill assuming 25% bracket on them for something I might not even use?
2
Posted on 5/16/12 at 3:02 pm to Catman88
Are they for any where in the world?
Posted on 5/16/12 at 3:04 pm to Will Cover
Anywhere US, Canada, Carribean or Mexico with Delta.
Posted on 5/16/12 at 3:07 pm to Catman88
quote:
Anywhere US, Canada, Carribean or Mexico with Delta.
I would question whether or not 2 tickets to any of those places would even cost $1K.
Posted on 5/16/12 at 3:09 pm to Catman88
That better be first class with a blowjob.
Posted on 5/16/12 at 3:13 pm to mule74
Im pissed.. She signed all the tax info on them and didnt let me know. We have a 6week old child and she is wanting to use the tickets in the next 2 weeks bf she goes back to work and take her parents for free to SOMEWHERE.. I told her just to wait until our son was older and we could make a vegas trip with them but she doesnt want to waste them on a weekend trip.
Posted on 5/16/12 at 3:14 pm to Catman88
quote:
Im pissed.. She signed all the tax info on them and didnt let me know.
You should be.
Based upon what you have written, it doesn't seem like she "won" anything.
Posted on 5/16/12 at 3:16 pm to Will Cover
Yeah, sounds like you just spent a cool 5 grand. Have a blast!
Posted on 5/16/12 at 3:19 pm to Will Cover
Just pisses me off that they file tax docs on it claiming its 4k in value then they give you a limited window like that to book them. WTF. Back to the question does anyone know what the tax liability is on something like this?
its 4 tickets BTW too not just 2. If I use these tickets for a trip that is only 1500 normally would I still get hit with 4k income?
its 4 tickets BTW too not just 2. If I use these tickets for a trip that is only 1500 normally would I still get hit with 4k income?
Posted on 5/16/12 at 3:20 pm to Will Cover
quote:
I would question whether or not 2 tickets to any of those places would even cost $1K.
This.
Posted on 5/16/12 at 3:21 pm to Catman88
quote:
Back to the question does anyone know what the tax liability is on something like this?
It varies, but typically tax liability doesn't apply until you get something up to $1000. Not sure why they're valuing these tickets so damn high, though. What you're taxed could also depend on your income. Example: I used to work for a company that did a lot of giveaways and stuff, and this woman won a Super Bowl Package worth like $10k, but she was unemployed so she didn't pay a dime in taxes.
Posted on 5/16/12 at 3:37 pm to Catman88
You will receive a 1099 with the presumed $4k value of the tickets.
When you file your 2012 tax return use the actual amount of costs you incurred to take flights instead of the amount noted on the 1099. Provide all documentation pertaining to the flights and receipts.
It is likely the IRS will flag your return for the discrepancy, but also very likely that you will only be liable for the taxes on the actual realized value of the tickets.
When you file your 2012 tax return use the actual amount of costs you incurred to take flights instead of the amount noted on the 1099. Provide all documentation pertaining to the flights and receipts.
It is likely the IRS will flag your return for the discrepancy, but also very likely that you will only be liable for the taxes on the actual realized value of the tickets.
This post was edited on 5/16/12 at 3:38 pm
Posted on 5/16/12 at 7:08 pm to LSUAfro
Using 2 vouchers and booked a flight to St Thomas USVI. Only way to make the tax worth it since it would cost 1k for us to fly normally.
Posted on 5/16/12 at 7:13 pm to Catman88
Leaving the inlaws home? 
Posted on 5/16/12 at 7:56 pm to TigerDeBaiter
they are gonna watch the baby
Posted on 5/17/12 at 9:56 am to Catman88
quote:
When you file your 2012 tax return use the actual amount of costs you incurred to take flights instead of the amount noted on the 1099. Provide all documentation pertaining to the flights and receipts.
Do not do this. If 4000 is on the 1099 you need to put that amount as income from winnings. You can then reduce it to the market value if you actually use them. If you do not use them, I would report the 4000 and reduce it to zero. You have an arguement that you received nothing of value therfore you should not have to pay tax on it. It might fly, it might not.
Posted on 5/17/12 at 10:00 am to LSUMon
quote:I've done it successfully.
Do not do this.
quote:
You can then reduce it to the market value if you actually use them
That's what I said.
Posted on 5/17/12 at 10:01 am to LSUMon
I would use them if you can, but go online and find out what those tickets are actually going for, document that, and then pick that amount up as winnings.
But still, if the 1099 says 4000 - this needs to be shown on the tax return or you will get correspondence.
But still, if the 1099 says 4000 - this needs to be shown on the tax return or you will get correspondence.
Posted on 5/17/12 at 10:03 am to LSUMon
quote:
But still, if the 1099 says 4000 - this needs to be shown on the tax return or you will get correspondence.
Do you think there is any way to avoid correspondence in this circumstance?
If he puts $4k or $2k? I don't think so. He will have to communicate this issue almost certainly if he chooses not not use the full $4k.
This post was edited on 5/17/12 at 10:05 am
Posted on 5/17/12 at 10:05 am to mule74
quote:
That better be first class with a blowjob.
Please advise which airline???
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News