quilterj

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?

k3n

I wouldn't think you'd have to pay tax on a prize, would you? You don't here.

Lisa_wanna_b_quilter

You certainly pay taxes here on cash prizes. I don't know about other things.

tlrnhi

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.

k3n

Actually when I said 'here' I meant the UK! You can take the girl out of England... Not sure about France. In the UK you don't pay tax on the actual winnings, only on income that they generate. For example, if you won a million on the lotto and stuck it in the bank, the million itself is tax free, the interest it generates is taxable. Interesting. :-)

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?

amma

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:

quilterj

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!!!!

Oklahoma Suzie

good luck, hope you win

mommaB

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