I won a prize. Now what?

Forum|Forum|7 years ago
June 1, 2019
7 replies
85 views

I won a prize on the radio. It was quite large. How do I claim that on my taxes?

TurboTax Deluxe Online

Best answer by

First and Foremost Congratulations on the Win! To answer your question yes you must declare those winnings in your Tax Return.

In most circumstances there will have been a Federal Withholding on the amount of money that you won. This withholding will be paid and reported to the IRS by the issuer of the prize. Winnings are usually reported with form W-2G for gambling, lottery or raffle winnings and other contest winnings or prizes as such are reported with 1099-MISC. In your case you should receive a 1099-MISC for your prize winnings from the issuer.

In order to accurately file your Tax Return we recommend that you wait to receive this document from the issuer if you have not already received it. Once you have the 1099-MISC you will be able to enter this income in TurboTax by following the instructions below:

        1. Log into your TurboTax Online Account and enter your Tax return through Tax Timeline
        2. From the uppermost Main Tab select and click on Federal Taxes
        3. In the next screen and Secondary tab select and click on Income and Expenses
        4. In this screen scroll down and find Other Common Income and click on Show More
        5. In the dropdown you will click on the Start button next to 1099-MISC.

The program will walk you through entering all of the information from your 1099-MISC for winnings. It is very important that the Dollar amount you enter is from Box 3 of the 1099 that is labeled as Other Income. This will keep that income in the proper section of your 1040.

A

Anonymous

Answer

First and Foremost Congratulations on the Win! To answer your question yes you must declare those winnings in your Tax Return.

In most circumstances there will have been a Federal Withholding on the amount of money that you won. This withholding will be paid and reported to the IRS by the issuer of the prize. Winnings are usually reported with form W-2G for gambling, lottery or raffle winnings and other contest winnings or prizes as such are reported with 1099-MISC. In your case you should receive a 1099-MISC for your prize winnings from the issuer.

In order to accurately file your Tax Return we recommend that you wait to receive this document from the issuer if you have not already received it. Once you have the 1099-MISC you will be able to enter this income in TurboTax by following the instructions below:

        1. Log into your TurboTax Online Account and enter your Tax return through Tax Timeline
        2. From the uppermost Main Tab select and click on Federal Taxes
        3. In the next screen and Secondary tab select and click on Income and Expenses
        4. In this screen scroll down and find Other Common Income and click on Show More
        5. In the dropdown you will click on the Start button next to 1099-MISC.

The program will walk you through entering all of the information from your 1099-MISC for winnings. It is very important that the Dollar amount you enter is from Box 3 of the 1099 that is labeled as Other Income. This will keep that income in the proper section of your 1040.

R

repcon34

Level 2

Car won was dealer listed $41,500.00 Had to sell to pay tax,etc. Sold for 30,000.00. Are reported earnings $30,000.00 or dealer price?

J

JamesG1

Level 15

I believe that you are asking about the tax event of the sale of the vehicle which you had previously won.

Hopefully, you received a 1099-Misc box 3 which stated the taxable value of the vehicle in the year that you won the vehicle. Then you paid taxes on that income in that year.

If the 1099-Misc box 3 listed an amount of $30,000 and you sold it for $30,000, there is no gain or loss.

If you had gain, it would be reported on Schedule D. If you have a loss, it may not be deductible. It sounds like this may be a personal loss and not be deductible. See IRS Publication 544 page 34 and below.

Personal-use property Report gain on the sale or exchange of property held for personal use (such as your home) on Form 8949 and Schedule D (Form 1040), as applicable. Loss from the sale or exchange of property held for personal use is not deductible.

There are many variables here. We do not know the length of time that you owned the vehicle. Was the vehicle depreciated? We do not know whether this was a personal asset, a business asset or something else. We do not know whether you reported the prize or what value was placed upon the vehicle.

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L

lacy8888

Level 2

Can you post instructions? I’m in the same situation, but the company will not send me a 1099misc and now they won’t respond to me. It was a cash prize and I know the amount. I found a other income spot to put it on TurboTax and it allows you to add a description of the income but it says not to add anything that’s on a 1099misc.

GiseleD

Level 14

According to Tax Expert MinhT1, you need to report this amount as Other Reportable Income.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income on top of the screen
Scroll down to All Income, locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.