AZ8
WKR
Good info. Thanks. We have a yearly raffle here and one of the prizes is a Swarovski Optics Package with a value of $15K. I always enter, then wonder if I win how to report. HahaFrom what I have 'researched' - Sometimes.
It appears to depend on the value of the prize. There are some rules about value level before reporting is required - if there is no reporting, no 1099 is sent and a person has to self-report the 'additional income' [similar to gambling wins/losses]. I found that $5k seems to be the limit. If the declared value is greater than that, the prize givers have a lot more paperwork to deal with; if under that, they basically have to file only that the prize was awarded and attest to its value. Everything else then is required to be completed by the prize winner.
I think too, the prize giver can chose to withhold taxes [or pay them] when the prize is awarded - I've read this can happen with the high value stuff.
I don't know what the minimum value would have to be to not report it - maybe $600 or whatever minimum value is required before you have to file taxes?
But I never win it.
