I won a non-cash prize (a video capture card) in December 2021. The MSRP is about $100 USD. I was notified I won in December 2021, but didn't actually receive it in the mail until around January 1st or 2nd 2022. My question is, for what tax year should the prize be reported? 2022 or 2021?
A somewhat related question: I applied for a $150 signup bonus for a checking account in December 2022. Due to some ID verification issues, I had to call them and ask them to apply the promotion to my account, which they did and I received the bonus in January 2023. Even though I started the process in 2022, I'm assuming that I would report that $150 for tax year 2023?
I would report both of those items in the year actually received, assuming you are a cash basis taxpayer. However, I also doubt the IRS would object if you reported them in the earlier year.
Okay, so (just to be super clear) reporting them for the year I actually received them would be 2022 for the $100 prize and 2023 for the $150 bonus? Not sure if I'm a "cash basis taxpayer".
Yes, those are the years, that is, the later year in the two questions.
It is rare for an individual not to be a cash basis tax payer, so if you don't know, you surely are on the cash basis.