Hi,
Last year, my local radio station was hosting a competition to win a trailer from a separate retailer. I entered the competition and lo and behold, I won the trailer. Weeks later, I picked up the trailer and paid off the sales tax totaling a little over 4k.
Recently, I received a 1099-MISC form from the trailer retailer in the mail for the total amount of the trailer including the sales tax I had already paid (50,335.66 total).
Not too long after though, I received another 1099-MISC form for the trailer from the company who hosted/sponsored the giveaway event, but the total on the form shows different (46,211.00 total). This amount looks to be the total amount of the prize value before the sales tax was added on.
When I entered both forms on my taxes, it shows the value for both documents together for a total value of 96,546.66, which is way past the value of the trailer. This is now putting me in a higher tax bracket, which I feel is incorrect.
I am confused at this point now. These documents are for the same thing, but different companies.
Shouldn't it only tax me for the total amount of the trailer (50,335.66), and not both documents added together?
Do I need to enter both 1099-MISC forms on my taxes when I file, or just the one showing a higher amount from the trailer retailer?
Thank you for any help in advance.
