can a sweepstakes sponsor pay your taxes on sweepstakes winnings
If you live in the United States, you re required to pay taxes on your sweepstakes prizes. Each year, the IRS will expect you to declare your sweepstakes taxes when you turn in the rest of your taxes. But which prizes are taxed, and how do you declare them? Sweepstakes sponsors must report prizes worth $600 or more to the IRS Sweepstakes sponsors are required to submit a 1099 form for prizes and awards that are not for services, such as winnings on TV or radio shows if those prizes are valued above $600. 1 Casinos and gambling institutions are required to withhold taxes on winnings above $600. If you enter sweepstakes regularly, sooner or later you ll win a prize. If you live in the United States, you re required to pay taxes on your prizes, and that s where 1099-MISC forms come in. If you win any prize worth more than $600, the sweepstakes sponsor is required to send you a 1099 form for it. If the sweepstakes prize is worth more than $5,000, the sponsor must withhold 25 percent of the prize value for federal taxes and may have to withhold state taxes as well. If you re simply reporting your prize winnings to the IRS based on the ARV that the sweepstakes sponsor gives you, you may well be. But there s an easy way to ensure that you only pay what you owe in taxes and no more. The secret lies in knowing the difference between fair market value FMV and approximate retail value ARV . www.facebook.com mobile It pays to write short sentences and short paragraphs, and to avoid difficult words. I once wrote that Dove made soap obsolete, only to discover that the majority of housewives did not know what the word meant. I had to change it to old-fashioned. When I used the word ineffable in copy for Hathaway, a reporter telephoned to ask me what it meant. I hadn t the faintest idea. Nowadays I keep a dictionary beside my telephone. And those words? Own Analytics Package? The date was October 14, 2012. The plan was for Baumgartner to ride that balloon some twenty-four miles above the Earth, higher than anyone has ever ridden a balloon before. To make this possible, he wore a one-of-a kind pressure suit designed to buffer temperatures as low as seventy degrees below zero and wind speeds of more than 700 miles per hour and to facilitate his ultimate goal space-diving out of the balloon and falling back to Earth and along the way become the first human being to bareback the sound barrier exceeding Mach 1 without aid of an engine or protection from a craft.