If you win a $1000 from a New York City radio station, do they actually send you a check for a thousand dollars? Or do they deduct all sorts of City, State and Federal taxes first?
I always imagine someone winning $1000 and then getting a check for $275.43.
…or From.
Whichever floats your boat.
I won $999 from a local radio station and was sent the full amount. I did have to supply my SSN to get the money and the following January I received a 1099 form from the radio station so I could properly claim the winnings on my income tax return.
I met a guy who won $125,000 on Who Wants to be a Millionaire. He said he got the full amount in a check shortly after the taping.
I won $100 from a radio station and got the same 1099 as racer72 above.
I’ve won prizes from radio stations and all kinds of other places, usually through games or trivia contests.
As a rule, if the prize’s value is under $600, the prize giver won’t send you a 1099. Legally, you’re STILL supposed to declare the income and pay taxes on it, but since the IRS doesn’t know about it, you’d probably get away with not declaring the income. If the prize is worth more than $600,you’ll get 1099 in the mail, and will have to declare the prize money as income, and pay taxes on it.
My brother, a US citizen, won a radio contest while driving through Ontario (it was a trip and concert tickets and dinner et al). I think the whole thing was worth maybe CN$2,000. Because he wasn’t Canadian, there was nothing to report according to any laws.
(provided as a benefit to non-USians.)
I have worked for radio stations the past 35 years. We always handed out the prize promised. We weren’t responsible for the taxes.
That part is true…radio legend may follow.
Since the 70’s I have heard the tale of a Houston couple winning a Rolls and later suing the station when they discovered they owed Uncle Sam 28% of the value. Is this tale true? I don’t know. But it has served as a grail for programmers I have worked with to remind big ticket winners that they are responsible for any taxes (and to get a signed statement that they are aware of it).