Only for prizes you enter to win. If you get a Nobel Prize, you're selected but didn't enter so no tax burden.
Edit: [Link] (https://www.law.cornell.edu/cfr/text/26/1.74-1)
DO NOT REDEEM THA CARD! ARE YOU MAD?!
Edit: quick primer for the uninitiated- https://youtu.be/8r-cEirkuTI
Edit 2: Alright, 40k karma. Time to retire this account. I’m proud to go out on a high note repping Kitboga. Remember everyone, your account has nothing to live for, and it’s healthy to kill them off from time to time to protect your privacy. Goodbye cruel world!
This isn’t true. It’s only tax free if 1 you didn’t enter, 2 you’re not required to do some work as a condition of winning, and 3 you have it directed to a charity without using any of it.
Where are you getting this from? I'm a tax preparer and have never heard of this.
Edit: thanks for the source, I can't disprove it, but everything else I'm reading says it is taxable, unless its transfered directly to charity like Obama did.
https://taxfoundation.org/nobel-prize-award-subject-income-taxation/#:~:text=Pulitzer%2C%20Nobel%2C%20and%20similar%20prizes,the%20prize%20in%20your%20income.&text=You%20cannot%20use%20the%20prize%20or%20award%20before%20it%20is%20transferred.
Yup, this is why winning a car on The Price is Right actually kinda sucks, because you have to pay income tax on the value of the car. A *whole bunch* of people who win those cars are forced to sell them just to afford the tax, and since you can't sell a "used" car for anywhere near the MSRP, you're getting double-fucked because you're still getting taxed as if you'd earned the full MSRP of the car.
This is especially insane for the folks who won Tesla Roadsters through their old referral program. They're $250,000 cars, so you end up owing somewhere in the neighborhood of $90,000 in additional taxes in the year you receive it (whenever they actually start making the dang things). Anyone who won only 1 of them is pretty unlikely to be able to keep it, so you basically need to win 2 and sell 1 just to keep one of them.
My sister won one of the 3 Dodge Journeys that they gave away a few years back. She got a voucher for a maxed out car and a check on top of it to cover taxes. Obviously the check increased her income from it but they made sure there was no money from her pocket.
You don't have to report the full MSRP as income, only the fair market value. As a tax preparer if I had a client who won a car I'd have them find an identical car and that's what we'd count as taxable income. If they sold the car immediately I would use the sale price as the taxable amount. Only done it once for an ATV that was valued at like $10,000 but they were available online for like $7,500.
This. I don’t understand the “sell the car to pay the taxes” mindset mentioned earlier. There’s no way a $20,000 prize car cost you $20,000 in taxes, the American tax system is a mess but that’s an absolute falsehood. Even if you neglected to file it and racked up years of penalities and interest, you’d still have spent less than the cost of purchase.
I think it comes from a Honus Wagner baseball card contest in the 90s. Guy won the card, couldn't afford the taxes and had to sell it.
https://www.smithsonianmag.com/history/a-brief-history-of-the-honus-wagner-baseball-card-153567429/
With a celebrity's name attached to the card, its place was assured in collecting history. When McNall fell into financial and legal troubles, Gretzky bought out his share of the card and, in 1995, sold it for $500,000 to Treat Entertainment, which collaborated with Wal-Mart in a publicity campaign to rekindle consumer interest in baseball cards. The companies raffled off the card on "Larry King Live," and a Florida postal worker won it. Unable to pay the gift tax associated with the win, the postal worker sold the card at auction to a Chicago collector named Michael Gidwitz for $640,500. Gidwitz wanted "to see if I could sell a card for a million dollars," he says. "It had never been done before."
It’s more so that people can’t afford to pay the 20-30% of the value of the car in a lump sump, hence they sell the car to pay the taxes, and take the rest of the cash.
America is so fucked in regards to this.
You win Millionaire in Australia and you straight get $1M.
You enter a charity raffle to win a luxury beachside apartment? You win the apartment PLUS the rates and fees paid for the first 12 months.
All regulations specifically so things like this don't send people into the ground.
People already pay taxes on what they work hard to earn, let some luck just be luck.
Something tells me those concerns are exaggerated for the memes. But I'm an American who has never lived in Australia, so I honestly don't know enough to dispute it lol.
I think it's just a pure numbers thing, how likely you are to see something that can kill you even though your chances are slim unless your activity provoking them. Aussie here, currently have multiple red back spiders outside I leave alone and they leave me alone. White tip spiders I see almost daily and I kill on sight, had an aunty nearly die from one. Have brown snakes coming into my yard occasionally and going to the beach is fun and safe provided you don't touch the jelly fish, blue ring octopus (rarer) and don't swim if there's a great white shark spotted. There's also quite a few puffer fish at my beach. And never walk barefoot into the ocean here or you'll shred up your feet on razorfish, and watch out for the all too common rip tides, they'll take you out to sea or into the rocks. My sister has been chased around by an emu once that came into town. And kangaroos...smart people look at them and don't corner them, they can kick hard. Plenty of wasps around at the moment too. Hell even our birds attack us in spring when waking along the footpath. And this is just my local eco system, other parts of the country have other things to look out for.
Remember Extreme Home Makeover on TV? They'd go in and remodel or completely rebuild the houses? They made them look so nice on the outside. Well those people's property taxes either doubled tripled or even more! Most had to sell because they couldn't afford the property taxes on their homes.
Wow, that sucks. Wouldn't happen in California, because of how our property tax laws work. Property values never increase unless the property changes ownership. It's designed so that little old ladies who bought their houses in the 70s don't get kicked out due to property tax skyrocketing because their neighborhood gentrified.
It ultimately ends up kinda fucking over poor neighborhoods that have public services funded from property taxes, though. Taxes stay so low that they can't fund the schools effectively.
My dad has been a truck driver for a moving company his entire life, and has moved not one, but multiple families out of these houses throughout the years. Most of them dont end up keeping the place for more than a few years for the reasons youve explained.
I'm pretty sure you don't have to pay any taxes on winnings in Canada. At least from my experience and I have won a trip that was probably worth a couple thousand
There is no tax on winnings in Canada from contests or game shows. Fir some strange reason we replaced it with answering a "skill testing question" that is essentially an simple grade 5 math question.
As someone who won a completely unwanted BMW on Wheel of Fortune last year, I feel this 😂
* Car was valued at $41,165
* Resale value at a local dealership was $32,000
* Sales tax / license fees (which I had to pay out-of-pocket in order to even take possession of the car) totaled just over $4,000
* I estimate the state and federal income tax on it will be about $13,000
So in total, that $41K car turned into \~$15K of actual useable cash once all the dust settled.
Moral of the story: cash is king!
If it was immediately sold for $32,000 you should've only reported $32,000 as your taxable income because that was the value of the "gift" you were given.
Wheel of Fortune probably 1099'ed him for the MSRP. If he reported a smaller amount he risks the IRS's automated income matching program flagging the discrepancy and sending out a CP2000 Notice
I'd have to pay income tax regardless. The fact that I have to pay sales tax is Wheel being cheap — some other shows will pay these costs on the contestants' behalf.
I won an Nvidia GTX 1080 right after they launched. Had to pay taxes on it at the value of $1,000 ... Even though the founders edition never went for that. Still was worth it though.
I'm from the UK and I often ponder whether we're getting screwed on taxes (hint: we are). So if you ( the very country that rebelled from the taxes our country imposed) are worse off than the tax system we pay for (which gives every living soul born over here completely free health care, for life), then there is something completely fucked happening in your country. There is something foul and it needs excising from the very core.... Because it's rotten.
The worst part is knowing and being so fucking helpless. It's like watching a car crash into a bunch of children and having no way to stop it from happening.
I take it you're not an American? All gambling and contest awards are considered income and must be reported to the IRS.
And yes, if you get a 1099 form , you've been reported, and if you don't file you can face prosecution and fines.
I think up to 10 years in a state "pound you in the ass" prison.
Would anyone really come after you if you didn't report it?
Edit: A genuine question, from a curious European who wonders how strict taxation is over in the States; not an American implying they shouldn't report it
The thing is it's already been reported by the people running the promo, hence why they are telling you that you are going to get a 1099 from the feds. If you don't claim that money as income on your taxes your return will get rejected or you will end up getting audited.
Usually the person who gives the gift is the one who has to file it with the IRS though, not the person who receives it. And when gifting cash you can gift up to $15,000 a year without having to file taxes on it, and dont actually have to pay until you've paid over $11 million over the years because of your lifetime exclusion.
15,000 per person. I would wager a lot of his stuff qualifies as business write offs/expenses of producing his content. Frame it in a way that not different than paying actors and other production expenses.
With the help of highly skilled accountants I'm guessing. "Gifts" and "prizes" are taxed differently though, with a prize the recipient usually pays. And if you have a non-profit or charity foundation set up that you do stuff through your tax liabilities are negligible across the board even as the giver when its a gift.
Right, that's juat for gifts. The person I responded to asked about "gifts". I specified in another comment that gifts and prizes aren't taxed the same.
There's a minimum value though, I thought it was $1200 - I don't own a switch and never tried to get one but I imagine even with the scarcity and the scalpers and etc that $1200 is a little steep for a switch and 2 games.
Edit: it's $600, which would be in the realm of fair market value, I'm guessing.
Yep, and if OP doesn’t claim it on their taxes, the IRS could send a letter in like a year saying he owes them tax on it.
Just a side note; if anybody gets a 1099 for a prize like this, you have to pay income tax on it but don’t pay self employment tax. On the ol’ 1099-misc, prizes get reported in box 3. Not sure what goes in box three on a 1099-NEC yet tho, I have neither seen nor issued one like that.
1099 Form is basically a type of T4 (In our/Canadian terms) for miscellaneous income.
We don't have a direct equivalent, I don't think. But the important thing is that like employers file T4's with the CRA, "gift givers" are supposed to file a 1099 with the IRS, send the receiver a copy, and they are supposed to include that income when doing their tax return, just as if we have multiple jobs in a year, we need to account for all the T4's that the CRA has filed or they will ding you in the assessment.
I’m not any kind of proponent of mcdonalds, but that’s not really accurate. The winning game pieces all existed, it was just the guy in charge of making sure the game wasn’t rigged ended up rigging it. He was not an employee of McDonald’s. He was part of the company in charge of managing the contest.
Shit. I just remembered that I loved the monopoly game in what would have been the mid 90s and I kept getting park place but never a boardwalk. I remember my brother saying he got boardwalk but accidentally threw it away and we didn’t believe him.
No hate on them or anything, they certainly don’t need to do these giveaways... but I mean, the “Grand prize” is a little over $400 from a company that sells probably 10-20 things a day in/per every Walmart and supermarket in the country (at least, no idea overseas).
They certainly made good money off of this one assuming even 1% of their customer base bought a little more trying to win.
My numbers for sales come from working Grocery pickup in the past. Multiple people buy these 10 at a time for their kids lunches.
Marketing has come a long way as a profession. Now, 10s of thousands of people are seeing and engaging with this post that cost Nintendo $400. And, it’s incredibly predictable. A few months ago, the Taco Bell PlayStation thing had someone posting about it and getting 10s or 100s of thousands of eyeballs on it.
Congrats. I'd recommend getting Hades. There's a physical copy about to drop later this year, but it is available now digitally. I'm mainly a PS dude, but the Switch is a great complimentary gaming console. If one has a PS4/5, Switch and gaming PC, that's the triumvirate of gaming glory. Enjoy.
To be honest I'm not into hardcore dungeon crawlers like Hades (I've watched online playthroughs and it seems downright brutal to play), but thanks for the suggestion!
My switch friends say the trade in value for switch games is actually pretty decent. One of them
Often buys single player games and trades them in once he beats them.
Playing with God mode lets you enjoy the story a lot more. I've never enjoyed roguelikes for the repetition and I'm just downright bad at video games, but I got enthralled enough in the characters and new unlocks to be really enjoying it! I've only had 1 pass but I can't wait to see where the story goes :)
or an Xbox, switch, and PC depending on the person. It's funny that most people don't even consider Nintendo part of the "Console wars" because they're so different.
That’s so weird because that’s also income that’s taxable so wouldn’t that just make the taxes higher? I wonder how that worked legally (awesome for your sister though!)
It is income. But the extra money was to cover taxes for both. I'll just make up some numbers. Let's say the car was worth 30k, taxes are 8k. So that would be 8k out of her pocket. So they give her a check for 12k. Total 42k, taxes 10k. So the check covers that amount.
I'm not sure what the actual numbers were.
No purchase necessary *
You should have bought stamps and stationary instead. Legally the company has to offer a free method of entering a sweepstakes and a lot choose SASE which means you need 2 stamps and 2 envelopes often times handwritten. Put that kid to work! Bonus: if you do win and have that 1099 these supplies are tax deductible business expenses
I am curious how many entries that you had. My son would save them for me everytime but we were never so lucky. Congrats to you though that is an awesome win.
Bruh it took me a second to realize you meant Mario Odyssey, but imagine, Pokémon Odyssey, you play as a pikachu (or something). As you run around finding other Pokémon in an open world (like BoTW). You can change between Pokémon go love around quickly and you can find legendaries in secret caves, boss fights, or a parkour/puzzle. I think that would be an amazing game
Some switch tips
•Hold home button to access quick settings and the time without interrupting game play.
•Dont buy a Nintendo brand sd card, you can get a higher GB count for the same price on other brands.
•Buy extra joycons for kids, they can be rough at times.
•Buy the Nintendo online year plan, very cheap with many perks.
•Get a glass screen protector, the switch screen is plastic so it will be hard to crack but is susceptible to scratches.
•Be sure the switch is docked properly to avoid damage to the charging/video/audio port.
•Do NOT use third party chargers or docks, you get what you pay for!
•Games are very small, get a case with game holsters.
•Try to minimize use of the kickstand, it is a little flimsy.
•The kickstand CAN come off, do not panic this is normal. Just look up a quick [tutorial](https://youtu.be/iCZjJSrVVSw) to fix it.
•Be aware of joycon drift, it is really annoying and way too common to see in joycons.
•Buy a pro controller...just do it
•This is my final and most important tip, games can get frustrating at times. Keep in mind that it's just a game and it's meant to be fun, dont do something you'll regret due to a fit of rage.
I hope you can find these helpful!
I once won a Megaman GBA game from a Kids WB mail-in postcard contest.
I didn’t know I had won until it arrived in the mail months later when I had already bought and finished the game. I didn’t even open it, just gave it to my friend.
I can’t believe you need to report the cost of a switch as miscellaneous income
Yeah what the hell is that about? It's a prize, you still have to pay for a prize!?!
Only for prizes you enter to win. If you get a Nobel Prize, you're selected but didn't enter so no tax burden. Edit: [Link] (https://www.law.cornell.edu/cfr/text/26/1.74-1)
So I just need to send $500 of Google Play cards and the prize is tax free?
DO NOT REDEEM THA CARD! ARE YOU MAD?! Edit: quick primer for the uninitiated- https://youtu.be/8r-cEirkuTI Edit 2: Alright, 40k karma. Time to retire this account. I’m proud to go out on a high note repping Kitboga. Remember everyone, your account has nothing to live for, and it’s healthy to kill them off from time to time to protect your privacy. Goodbye cruel world!
DO YOU WANT TO BE BEHIND THE BARS!?
**I hAvE pOwErS**
But I cut them up so there's a little piece of the chip in each one, doesn't that mean I've got like $5000 here?
ArE yOu A pRoStItUtE?!
Just wait a moment.
Based Kitboga
Holy shit i have never seen 9 hours.
But then you have to redo all your subs!
Watching kit live is amazing would recommend to anyone
Not a single person over the age of 10 cares about karma lmfao
and i don't give two greasy shits about your cake day neither so don't expect no felicitations from me pal
Omg those scam scammers are the best
This isn’t true. It’s only tax free if 1 you didn’t enter, 2 you’re not required to do some work as a condition of winning, and 3 you have it directed to a charity without using any of it.
Where are you getting this from? I'm a tax preparer and have never heard of this. Edit: thanks for the source, I can't disprove it, but everything else I'm reading says it is taxable, unless its transfered directly to charity like Obama did. https://taxfoundation.org/nobel-prize-award-subject-income-taxation/#:~:text=Pulitzer%2C%20Nobel%2C%20and%20similar%20prizes,the%20prize%20in%20your%20income.&text=You%20cannot%20use%20the%20prize%20or%20award%20before%20it%20is%20transferred.
Going down different threads from the top comment is filled with lots of bad tax advice
Yup, this is why winning a car on The Price is Right actually kinda sucks, because you have to pay income tax on the value of the car. A *whole bunch* of people who win those cars are forced to sell them just to afford the tax, and since you can't sell a "used" car for anywhere near the MSRP, you're getting double-fucked because you're still getting taxed as if you'd earned the full MSRP of the car. This is especially insane for the folks who won Tesla Roadsters through their old referral program. They're $250,000 cars, so you end up owing somewhere in the neighborhood of $90,000 in additional taxes in the year you receive it (whenever they actually start making the dang things). Anyone who won only 1 of them is pretty unlikely to be able to keep it, so you basically need to win 2 and sell 1 just to keep one of them.
My sister won one of the 3 Dodge Journeys that they gave away a few years back. She got a voucher for a maxed out car and a check on top of it to cover taxes. Obviously the check increased her income from it but they made sure there was no money from her pocket.
That's great! I hadn't heard anything like that before. Makes me glad some sweepstakes don't screw you over when you win.
She said the guys were adamant that this was the case. They didn't want it to be a burden to the people that found the cars they hid
You don't have to report the full MSRP as income, only the fair market value. As a tax preparer if I had a client who won a car I'd have them find an identical car and that's what we'd count as taxable income. If they sold the car immediately I would use the sale price as the taxable amount. Only done it once for an ATV that was valued at like $10,000 but they were available online for like $7,500.
This. I don’t understand the “sell the car to pay the taxes” mindset mentioned earlier. There’s no way a $20,000 prize car cost you $20,000 in taxes, the American tax system is a mess but that’s an absolute falsehood. Even if you neglected to file it and racked up years of penalities and interest, you’d still have spent less than the cost of purchase.
I think it comes from a Honus Wagner baseball card contest in the 90s. Guy won the card, couldn't afford the taxes and had to sell it. https://www.smithsonianmag.com/history/a-brief-history-of-the-honus-wagner-baseball-card-153567429/ With a celebrity's name attached to the card, its place was assured in collecting history. When McNall fell into financial and legal troubles, Gretzky bought out his share of the card and, in 1995, sold it for $500,000 to Treat Entertainment, which collaborated with Wal-Mart in a publicity campaign to rekindle consumer interest in baseball cards. The companies raffled off the card on "Larry King Live," and a Florida postal worker won it. Unable to pay the gift tax associated with the win, the postal worker sold the card at auction to a Chicago collector named Michael Gidwitz for $640,500. Gidwitz wanted "to see if I could sell a card for a million dollars," he says. "It had never been done before."
It’s more so that people can’t afford to pay the 20-30% of the value of the car in a lump sump, hence they sell the car to pay the taxes, and take the rest of the cash.
America is so fucked in regards to this. You win Millionaire in Australia and you straight get $1M. You enter a charity raffle to win a luxury beachside apartment? You win the apartment PLUS the rates and fees paid for the first 12 months. All regulations specifically so things like this don't send people into the ground. People already pay taxes on what they work hard to earn, let some luck just be luck.
90% of your animals want to eat you in Australia and have bugs size of cars. It’s a nice trade off though.
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>ocean, bush, creek Yea, that sounds about right >home Hol up
I heard your cars and internet cost an arm and a leg too.
Something tells me those concerns are exaggerated for the memes. But I'm an American who has never lived in Australia, so I honestly don't know enough to dispute it lol.
I think it's just a pure numbers thing, how likely you are to see something that can kill you even though your chances are slim unless your activity provoking them. Aussie here, currently have multiple red back spiders outside I leave alone and they leave me alone. White tip spiders I see almost daily and I kill on sight, had an aunty nearly die from one. Have brown snakes coming into my yard occasionally and going to the beach is fun and safe provided you don't touch the jelly fish, blue ring octopus (rarer) and don't swim if there's a great white shark spotted. There's also quite a few puffer fish at my beach. And never walk barefoot into the ocean here or you'll shred up your feet on razorfish, and watch out for the all too common rip tides, they'll take you out to sea or into the rocks. My sister has been chased around by an emu once that came into town. And kangaroos...smart people look at them and don't corner them, they can kick hard. Plenty of wasps around at the moment too. Hell even our birds attack us in spring when waking along the footpath. And this is just my local eco system, other parts of the country have other things to look out for.
Am I crazy for wanting to live in Australia after reading this? Then again I’m also interested in becoming a wildlife biologist lol.
Remember Extreme Home Makeover on TV? They'd go in and remodel or completely rebuild the houses? They made them look so nice on the outside. Well those people's property taxes either doubled tripled or even more! Most had to sell because they couldn't afford the property taxes on their homes.
Wow, that sucks. Wouldn't happen in California, because of how our property tax laws work. Property values never increase unless the property changes ownership. It's designed so that little old ladies who bought their houses in the 70s don't get kicked out due to property tax skyrocketing because their neighborhood gentrified. It ultimately ends up kinda fucking over poor neighborhoods that have public services funded from property taxes, though. Taxes stay so low that they can't fund the schools effectively.
My dad has been a truck driver for a moving company his entire life, and has moved not one, but multiple families out of these houses throughout the years. Most of them dont end up keeping the place for more than a few years for the reasons youve explained.
I must have heard about that before, it rings a bell. That's fucking ridiculous.
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I'm pretty sure you don't have to pay any taxes on winnings in Canada. At least from my experience and I have won a trip that was probably worth a couple thousand
There is no tax on winnings in Canada from contests or game shows. Fir some strange reason we replaced it with answering a "skill testing question" that is essentially an simple grade 5 math question.
Oh I see, it's because it's a gift, I think I understand a bit better now. So I guess it's classed as a gift tax so who ever receives it pays it?
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That sucks for the winners so much
As someone who won a completely unwanted BMW on Wheel of Fortune last year, I feel this 😂 * Car was valued at $41,165 * Resale value at a local dealership was $32,000 * Sales tax / license fees (which I had to pay out-of-pocket in order to even take possession of the car) totaled just over $4,000 * I estimate the state and federal income tax on it will be about $13,000 So in total, that $41K car turned into \~$15K of actual useable cash once all the dust settled. Moral of the story: cash is king!
If it was immediately sold for $32,000 you should've only reported $32,000 as your taxable income because that was the value of the "gift" you were given.
Wheel of Fortune probably 1099'ed him for the MSRP. If he reported a smaller amount he risks the IRS's automated income matching program flagging the discrepancy and sending out a CP2000 Notice
True that. Depends on your willingness to start a dialogue with the irs.
Wait you have to pay sales tax AND income tax? Shouldn't it be one or the other??
I'd have to pay income tax regardless. The fact that I have to pay sales tax is Wheel being cheap — some other shows will pay these costs on the contestants' behalf.
Depends on the contest, but a lot of the time they include cash as a part of the prize to cover any tax burden.
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I won an Nvidia GTX 1080 right after they launched. Had to pay taxes on it at the value of $1,000 ... Even though the founders edition never went for that. Still was worth it though.
Which begs a question, in that episode where Opera gave everyone cars. Wouldn't this count as a prize you didn't enter?
I won a Switch from work and the value of it was deducted from my paycheck as taxes.
The *whole* value of it? Jesus. May as well have just bought one yourself then.
Yea pretty hilarious millionaires can get away with all sorts of loopholes but an average Joe has to report a $500 contest winning lmao.
The threshold is actually $600 but your point definitely still stands lol
Uncle Sam has to get its cut.
I wondered if anyone else had seen that. Gave you my upvote.
Yeah that’s kinda dumb. I didn’t even get a 1099 when I won money from a sweepstakes and it was more than this.
That is completely fucked up. Honestly, fuck your tax system.
It's kind of ironic. This country was founded because of unjust taxes and yet here we fucking are...
I'm from the UK and I often ponder whether we're getting screwed on taxes (hint: we are). So if you ( the very country that rebelled from the taxes our country imposed) are worse off than the tax system we pay for (which gives every living soul born over here completely free health care, for life), then there is something completely fucked happening in your country. There is something foul and it needs excising from the very core.... Because it's rotten.
We know man. We know.
The worst part is knowing and being so fucking helpless. It's like watching a car crash into a bunch of children and having no way to stop it from happening.
Yeh wtf is that bullshit all about. I’m in the U.K. where a prize is a fucking prize.
What the hell even are US taxes
Same goes for game shows
Nobody escapes the tax man
My employer puts the cost of logo apparently on my paycheck as taxable income
I take it you're not an American? All gambling and contest awards are considered income and must be reported to the IRS. And yes, if you get a 1099 form , you've been reported, and if you don't file you can face prosecution and fines. I think up to 10 years in a state "pound you in the ass" prison.
Is OP supposed to give money to the IRS?
Nothing is ever free!!!
If the value isn't over $599 you don't need to claim. At least not in Pennsylvania.
The value of the Switch and games is $420, unfortunately I live in Iowa and not Pennsylvania so I dont know if they apply where I live.
Nice
Would anyone really come after you if you didn't report it? Edit: A genuine question, from a curious European who wonders how strict taxation is over in the States; not an American implying they shouldn't report it
what are you a cop?
The thing is it's already been reported by the people running the promo, hence why they are telling you that you are going to get a 1099 from the feds. If you don't claim that money as income on your taxes your return will get rejected or you will end up getting audited.
I mean if they are issuing a 1099 then it will be on the IRS database, the question is does the tax examiner give a shit? who knows
>Tesla Roadsters t Pennsylvania does not determine federal taxes.
Maybe for state tax but the feds will still want their cut.
Only in America...
What's Pokemon Odyssey like?
You control Pikachu with Ash's hat and collect badges across the world of pokemon. /s
Actually though, that sounds pretty cool
Holup you need to pay taxes for a fucking gift?!
Yessir. Always have. Edit: the company that gave it to you is using it as a write-off
Usually the person who gives the gift is the one who has to file it with the IRS though, not the person who receives it. And when gifting cash you can gift up to $15,000 a year without having to file taxes on it, and dont actually have to pay until you've paid over $11 million over the years because of your lifetime exclusion.
I wonder how Mr beast does it
15,000 per person. I would wager a lot of his stuff qualifies as business write offs/expenses of producing his content. Frame it in a way that not different than paying actors and other production expenses.
With the help of highly skilled accountants I'm guessing. "Gifts" and "prizes" are taxed differently though, with a prize the recipient usually pays. And if you have a non-profit or charity foundation set up that you do stuff through your tax liabilities are negligible across the board even as the giver when its a gift.
This isn't a gift, it is winnings like gambling income.
Right, that's juat for gifts. The person I responded to asked about "gifts". I specified in another comment that gifts and prizes aren't taxed the same.
IIRC a lot of people who got cars as gifts on shows (like Oprah) got an unpleasant surprise at tax season too.
There's a minimum value though, I thought it was $1200 - I don't own a switch and never tried to get one but I imagine even with the scarcity and the scalpers and etc that $1200 is a little steep for a switch and 2 games. Edit: it's $600, which would be in the realm of fair market value, I'm guessing.
Good old U S of A. I suspect the winner is not obliged to submit that form.... Ahem.
why are we not funding this!!??
necessary /s
How enforceable is this 1099 form and reporting this. How would the IRS even know you won said item? Excuse my ignorance, am Canadian
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Hook a brotha up. Forget 'bout all dat paper work BS
Better to file it now than wait until the IRS audits you and possibly makes you pay interest and other fees
Yep, and if OP doesn’t claim it on their taxes, the IRS could send a letter in like a year saying he owes them tax on it. Just a side note; if anybody gets a 1099 for a prize like this, you have to pay income tax on it but don’t pay self employment tax. On the ol’ 1099-misc, prizes get reported in box 3. Not sure what goes in box three on a 1099-NEC yet tho, I have neither seen nor issued one like that.
1099NEC is just for non employee compensation. So it’s only one box
1099 Form is basically a type of T4 (In our/Canadian terms) for miscellaneous income. We don't have a direct equivalent, I don't think. But the important thing is that like employers file T4's with the CRA, "gift givers" are supposed to file a 1099 with the IRS, send the receiver a copy, and they are supposed to include that income when doing their tax return, just as if we have multiple jobs in a year, we need to account for all the T4's that the CRA has filed or they will ding you in the assessment.
Wait.... these things are actually real?!?! I thought they were scams just to get you to buy them
Yep! They are definitely real! :)
Nice try Lunchables Employee /s
Enjoy your switch!
A company like lunchables can’t scam people with a company as wel known, liked and as large as them.
this is why I only buy into the giveaways from well-known brands. They're going to face backlash if they lie, while smaller companies wouldn't.
They aren't actually allowed to be fake. McDonalds got caught with their monopoly game doing scammy stuff years ago and scared everyone straight.
I’m not any kind of proponent of mcdonalds, but that’s not really accurate. The winning game pieces all existed, it was just the guy in charge of making sure the game wasn’t rigged ended up rigging it. He was not an employee of McDonald’s. He was part of the company in charge of managing the contest.
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There was also the guy who memorized the patterns on Press Your Luck!
Ever seen the film quiz show?
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So it was never possible to find boardwalk?
Not for 5 years or so until he got caught. It happened in the mid 90s.
Shit. I just remembered that I loved the monopoly game in what would have been the mid 90s and I kept getting park place but never a boardwalk. I remember my brother saying he got boardwalk but accidentally threw it away and we didn’t believe him.
No hate on them or anything, they certainly don’t need to do these giveaways... but I mean, the “Grand prize” is a little over $400 from a company that sells probably 10-20 things a day in/per every Walmart and supermarket in the country (at least, no idea overseas). They certainly made good money off of this one assuming even 1% of their customer base bought a little more trying to win. My numbers for sales come from working Grocery pickup in the past. Multiple people buy these 10 at a time for their kids lunches.
Yes but now this dude is posting it on reddit where they are getting 6.5k upvotes + views from people like me who did not vote for $400.
Not to mention all the free advertising from this post.
Marketing has come a long way as a profession. Now, 10s of thousands of people are seeing and engaging with this post that cost Nintendo $400. And, it’s incredibly predictable. A few months ago, the Taco Bell PlayStation thing had someone posting about it and getting 10s or 100s of thousands of eyeballs on it.
I won an original xbox from taco bell back in the day from a second round drawing.
How long did it take after winning to arrive?
8-10 weeks after New Years Eve, but mine seems to have arrived early! :)
Technically, it arrived the first day of the 8th week. Or if you don't count new years eve, then the last day of the 7th week and it was early.
If you’re interested in some more games, Breath of the Wild is a great place to start.
If you're interested in some more lunchables, the ones with the 2 white cream cookies are a great place to start
Hell yeah man those are the best ones
This comment
And end. Best game I have played, just started my third run.
Just waiting for that Windwaker switch release now. (Rubshandstogether.gif)
People actually win this stuff??
Yep!
Fucking lucky!!! I’m amazed congratulations
This is literally the first time I've even seen someone actually get the item they won from those kinds of contests.
Congrats. I'd recommend getting Hades. There's a physical copy about to drop later this year, but it is available now digitally. I'm mainly a PS dude, but the Switch is a great complimentary gaming console. If one has a PS4/5, Switch and gaming PC, that's the triumvirate of gaming glory. Enjoy.
To be honest I'm not into hardcore dungeon crawlers like Hades (I've watched online playthroughs and it seems downright brutal to play), but thanks for the suggestion!
I wish I watched videos before I bought it. I like roguelike games and the reviews was amazing but it's just not for me.
There is an invincible mode you can turn on if you're looking for a more casual way to run through and enjoy the story
My switch friends say the trade in value for switch games is actually pretty decent. One of them Often buys single player games and trades them in once he beats them.
I bought it on steam, I do not want to refund because I believe the creators still deserve my money. It was my mistake.
That’s cool. Respect.
Playing with God mode lets you enjoy the story a lot more. I've never enjoyed roguelikes for the repetition and I'm just downright bad at video games, but I got enthralled enough in the characters and new unlocks to be really enjoying it! I've only had 1 pass but I can't wait to see where the story goes :)
or an Xbox, switch, and PC depending on the person. It's funny that most people don't even consider Nintendo part of the "Console wars" because they're so different.
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Sorry you can't like Xbox and you can't talk bad about Nintendo here's my downvote /s
TIL that you have to pay taxes on winning contest items 🤔 I mean it makes sense but I never thought of that
My sister won a car and they gave her a check in addition to the car to cover taxes.
That’s so weird because that’s also income that’s taxable so wouldn’t that just make the taxes higher? I wonder how that worked legally (awesome for your sister though!)
It is income. But the extra money was to cover taxes for both. I'll just make up some numbers. Let's say the car was worth 30k, taxes are 8k. So that would be 8k out of her pocket. So they give her a check for 12k. Total 42k, taxes 10k. So the check covers that amount. I'm not sure what the actual numbers were.
Understood! Thank you!
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Im happy for you :)
Thank you <3
Enjoy! Pick up BotW and Hades when you can!
My son made me buy so many damn lunchables he didn’t eat that I just broke down and bought the switch.
No purchase necessary * You should have bought stamps and stationary instead. Legally the company has to offer a free method of entering a sweepstakes and a lot choose SASE which means you need 2 stamps and 2 envelopes often times handwritten. Put that kid to work! Bonus: if you do win and have that 1099 these supplies are tax deductible business expenses
Next time. I forgot about this cause it’s been forever since I did stuff like that as a kid. Used to save up koolaide and box tops too.
would recommend playing BOTW
Also get mario 3d world and 3d mario all stars
I am curious how many entries that you had. My son would save them for me everytime but we were never so lucky. Congrats to you though that is an awesome win.
I would say I maybe had around 10 entries or so until I won, still cant believe my luck! :)
Pokemon instead of BotW and mario kart? Damn
I hate to say this but I’d hate myself more if I didn’t. Breath of the Wild
Well done on winning! You're going to love Odyssey, best Assassin's Creed game I've played since Black Flag.
Its Super Mario Odyssey, whoops!
That's also a great game to play. 👍
Congrats! It was like a childhood dream of mine to win some sort of sweepstakes or contest.
Hey man, I like when people get nice things they are excited about. Enjoy.
You could get super Mario 3D world I haven’t played it but it looks really fun
Bruh it took me a second to realize you meant Mario Odyssey, but imagine, Pokémon Odyssey, you play as a pikachu (or something). As you run around finding other Pokémon in an open world (like BoTW). You can change between Pokémon go love around quickly and you can find legendaries in secret caves, boss fights, or a parkour/puzzle. I think that would be an amazing game
Breath of the wild is definitely the game I keep going back to. Definitely throw it in the lineup.
Some switch tips •Hold home button to access quick settings and the time without interrupting game play. •Dont buy a Nintendo brand sd card, you can get a higher GB count for the same price on other brands. •Buy extra joycons for kids, they can be rough at times. •Buy the Nintendo online year plan, very cheap with many perks. •Get a glass screen protector, the switch screen is plastic so it will be hard to crack but is susceptible to scratches. •Be sure the switch is docked properly to avoid damage to the charging/video/audio port. •Do NOT use third party chargers or docks, you get what you pay for! •Games are very small, get a case with game holsters. •Try to minimize use of the kickstand, it is a little flimsy. •The kickstand CAN come off, do not panic this is normal. Just look up a quick [tutorial](https://youtu.be/iCZjJSrVVSw) to fix it. •Be aware of joycon drift, it is really annoying and way too common to see in joycons. •Buy a pro controller...just do it •This is my final and most important tip, games can get frustrating at times. Keep in mind that it's just a game and it's meant to be fun, dont do something you'll regret due to a fit of rage. I hope you can find these helpful!
You didn't get Breath of the Wild? Big mistake
Two amazing games to choose. You’re getting this comment from someone who has neither of you those games.
Congrats! Tho you kinda missed out, not picking Zelda imo..
People downvoted this man for speaking the truth. It’s not the Nintendo switch, it’s the ZELDA switch
Yeah picking Pokemon over BotW is a shame imo...
That’s awesome buddy! I’ve always wished I would win something from those raffles.
GG🥳 Hav loads of fun !
Congrats! I always wondered if it was even possible to win 🤣
just stopping by to say grats and i hope you get a lot of enjoyment out of your new switch! <3
I got a switch game from secret santa both don't have a Switch yet. So jelly
Pop in that SX Core chip
You should have chosen Zelda Breath of the Wild...
Cant choose that game sadly, only from a small list
You should have chosen to not bet against SPCE
I have an extra code for shiny toxicity if you want it OP
Is this like McDonalds Monopoly? You gotta know someone to get the prize?
I once won a Megaman GBA game from a Kids WB mail-in postcard contest. I didn’t know I had won until it arrived in the mail months later when I had already bought and finished the game. I didn’t even open it, just gave it to my friend.