Question on tax liability for Craftsman Workshop of the Future Contest
From the rules: "All taxes associated with any prize are the sole responsibility of the each winner. "
I heard of people who have won significant prizes (e.g. a car) and then found themselves with some unwanted attention from the taxman.
I know states vary but am I wrong in thinking the winner might have to pony up ~$1000??
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Any winnings over $10,000 must be reported to the IRS, and a W-2 issued to the recipient. Happens in Vegas all the time, as well as on TV game shows (one of our good friends was a one-week Jeopardy champion, and foolishly took a couple of Camaros instead of the cash (from which to pay the taxes).
I was wondering about that, too. By the way, how's the laser cutter?
Dec 4, 2008. 7:09 PMradiorental (author)
says:
I didnt win the laser cutter, was the Canon Rebel. Its very nice (o So, I think this tax thing is a case of, if you win and you _want_ to tell the taxman you have 20K capital gains, then you need to pay tax. Or you could just keep quite. That is unless Instructables/Sears file something??
Oh? I would have sworn it was you. Oh well..it's still a great prize. You're right...just hope to hell that the man doesn't find out and audit you.
Instructables probably keeps fairly quiet. They seem to be "rooting" for the winners ;-) Sears on the other hand seems more of the kind to cover their asses.
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