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theknopicks
New Member

How do I enter in Game Show winnings? They said we could put in a cheaper value of the trip than what they estimated if we found it but we dont know how to do that

 
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MichaelL1
Level 15

How do I enter in Game Show winnings? They said we could put in a cheaper value of the trip than what they estimated if we found it but we dont know how to do that

The best way to do this is first show the winnings exactly as they are.  So say for example you got a 1099-Misc for $12,000, you would report that and it would show up on line 21 other income.

Then you determine the Fair Market Value (FMV) of the trip is actually $9,500, or $2,500 less.

You would then show on line 21 of the Form 1040 a negative amount of $2,500 with a explanation like, "game prize adjusted to FMV).

To do this in TurboTax go to Other Income in the income catagory all the way to the bottom and click on the last one, then next screen same thing and you will get to this area.

Note:  You need to have documentation in your tax records (don't send with returnb) as to how the FMV was arrived at, as it may get looked at.  

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4 Replies
MichaelL1
Level 15

How do I enter in Game Show winnings? They said we could put in a cheaper value of the trip than what they estimated if we found it but we dont know how to do that

The best way to do this is first show the winnings exactly as they are.  So say for example you got a 1099-Misc for $12,000, you would report that and it would show up on line 21 other income.

Then you determine the Fair Market Value (FMV) of the trip is actually $9,500, or $2,500 less.

You would then show on line 21 of the Form 1040 a negative amount of $2,500 with a explanation like, "game prize adjusted to FMV).

To do this in TurboTax go to Other Income in the income catagory all the way to the bottom and click on the last one, then next screen same thing and you will get to this area.

Note:  You need to have documentation in your tax records (don't send with returnb) as to how the FMV was arrived at, as it may get looked at.  

Keb7128
New Member

How do I enter in Game Show winnings? They said we could put in a cheaper value of the trip than what they estimated if we found it but we dont know how to do that

Hi! This was helpful. I was wondering - I won $50K at a gameshow and a trip that they valued at more than $18K.  I did some research and even if I got the presidential suite, there’s simply no way this trip could possibly cost THAT much. So I asked the trip bookers for a receipt and they said the entire trip was only $990 because the room was complimentary. I assume they gave it to the gameshow in exchange for advertising/air time. Should I adjust the 990 from the show from $68,000 to $50,900 and include the receipt they gave me and the explanation from the trip people? Or am I supposed to estimate the value of the room looking at the online rates? Thank you!!! 

Critter
Level 15

How do I enter in Game Show winnings? They said we could put in a cheaper value of the trip than what they estimated if we found it but we dont know how to do that

Use any way you can to support your decision on how much to report on the return in the event the IRS was to ask.  Inflated prices on prizes from game shows are common.  

Hal_Al
Level 15

How do I enter in Game Show winnings? They said we could put in a cheaper value of the trip than what they estimated if we found it but we dont know how to do that

Enter the 1099-Misc exactly as received. Do not change it. TurboTax (TT) will do that for you.  After identifying the reason for the 1099-Misc as "prize", you will reach a screen called. "Fair market value of prizes and awards".  There you will enter an adjustment for the prize value.  In your case enter -17,100.  TT will enter the 1099-Misc amount and the adjustment on line 21 of form 1040 (Schedule 1).

 

As an aside, I believe your suggested adjustment is over stated. Just because the room was complimentary to the game show, doesn't mean it had no value for you.  The fair market  value is the going rate for the room. 

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