I won tickets :1099MISC in the amount of $1240. Enter the adjusted amount of fair market value of prizes: $1240 . fed refund did not reduce. why?

[stantonporsche]

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.

[KrisD15]

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.

[VeryConfused]

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.

[AmeliesUncle]

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@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.

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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".