When you win something like from the shop hop, do you pay taxes on it before you recieve it or at the end of the year when you file?
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I wouldn't think you'd have to pay tax on a prize, would you? You don't here.
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You certainly pay taxes here on cash prizes. I don't know about other things.
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It depends on how much it is you win.
States are different with their laws. I'm thinking if you win just a $10 GF, you don't have to claim it. |
Originally Posted by Lisa_wanna_b_quilter
You certainly pay taxes here on cash prizes. I don't know about other things.
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Well, the USA is definitely different. I won $1000.00 on the lottery a few years ago and they took the taxes right away. Anything over $600.00 you have to go to their office or mail it in. This is in New York. But if you itemize and can prove you spent that much during the year, (if you are audited)then you can write off the amount. Otherwise it is considered income.
When it comes to actual prizes, I am not sure how it works, but know that it is different for every state. Did you win? If so, what? |
Legally...you are supposed to claim it on your tax return...
But unless it is an amount large enough that the company sends you a tax form (which also gets sent to the IRS), the IRS will never know about it :wink: |
Originally Posted by no1jan
Well, the USA is definitely different. I won $1000.00 on the lottery a few years ago and they took the taxes right away. Anything over $600.00 you have to go to their office or mail it in. This is in New York. But if you itemize and can prove you spent that much during the year, (if you are audited)then you can write off the amount. Otherwise it is considered income.
When it comes to actual prizes, I am not sure how it works, but know that it is different for every state. Did you win? If so, what? No, I haven't won yet. But our local shop hop starts tomorrow and was wondering if by chance I had won, would I have to pay taxes. Like the second prize this year is an Elna 3210 Gallery series and comes with a sew steady table. Hope I win!!!! |
Originally Posted by quilterj
Originally Posted by no1jan
Well, the USA is definitely different. I won $1000.00 on the lottery a few years ago and they took the taxes right away. Anything over $600.00 you have to go to their office or mail it in. This is in New York. But if you itemize and can prove you spent that much during the year, (if you are audited)then you can write off the amount. Otherwise it is considered income.
When it comes to actual prizes, I am not sure how it works, but know that it is different for every state. Did you win? If so, what? No, I haven't won yet. But our local shop hop starts tomorrow and was wondering if by chance I had won, would I have to pay taxes. Like the second prize this year is an Elna 3210 Gallery series and comes with a sew steady table. Hope I win!!!! |
Unless the shop you won from reports it to IRS I don't know how they'd (the IRS) know. If they did report it you should get some type of 1099 ish form. If they don't, You are supposed to be honest and report it anyway. Generally the retail value of the item is considered to be the amount of income to you if the prize wasn't cash.
As far as sales tax goes, If you win a gift cert, you'll pay sales tax on purchase the same as if you paid cash, if they charge tax. Good luck :D :D |
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