if i put zero for fair market value, then I get taxed but if I put $1240 as fair market value then I do not get taxed.
The box you are referring to is for making an ADJUSMENT to the 1099-MISC.
The adjustment is subtracted.
The 1099-MISC for a prize is listed on Schedule 1 line 8i. So you should see 1,240 on Schedule 1 line 8i.
The adjustment is listed on Schedule 1 line 8z.
The adjustment is SUBTRACTED from the Other Income amounts.
If you enter 1,240 for the 1099-MISC and zero as an adjustment, you are taxed on 1,240 income.
If you enter 1,240 for the 1099-MISC and 1,240 as an adjustment, you are taxed on 0 income.
1099-MISC casino Cash drawings prices can be entered as an adjustment for the
ADJUSTMENT TO THE 1099-MISC???? The FAIR MARKET VALUE of CASH is the actual cash. If not how can I enter gambling losses from the 1099-MISC, have all the back-ups for the losses.
@VeryConfused wrote:1099-MISC casino Cash drawings prices can be entered as an adjustment for the
ADJUSTMENT TO THE 1099-MISC????
If not how can I enter gambling losses from the 1099-MISC, have all the back-ups for the losses.
No. The original post about the adjustment is about non-cash prizes. It is fairly common that the 1099-MISC shows the "Manufacturer's Suggested Retail Price" for a non-cash prize, but there is solid evidence that the real-life value is less than that, so an adjustment can be made.
You don't. You won a "prize" (which is confirmed by the 1099-MISC), not won from 'gambling'. You can not deduct gambling losses from winning a "prize".