weedpindle Posted July 23, 2016 #1 Share Posted July 23, 2016 So I just won a 7 day Mexican Riviera cruise on the Ruby. I'll do the Classic California the week before also on the Ruby, use airline miles, and have a nice cheap 2 weeks. Link to comment Share on other sites More sharing options...
RJ2002 Posted July 23, 2016 #2 Share Posted July 23, 2016 Congrats! Link to comment Share on other sites More sharing options...
DougH Posted July 23, 2016 #3 Share Posted July 23, 2016 Congratulations, hope you have fun. Just don't forget although it may be "free" at the end of year you will get a 1099 tax form and have to pay taxes on probably a full list price $$. Link to comment Share on other sites More sharing options...
2pbears Posted July 23, 2016 #4 Share Posted July 23, 2016 Congratulations, hope you have fun. Just don't forget although it may be "free" at the end of year you will get a 1099 tax form and have to pay taxes on probably a full list price $$. Kill Joy! ;) Link to comment Share on other sites More sharing options...
Pam in CA Posted July 23, 2016 #5 Share Posted July 23, 2016 Congratulations, hope you have fun. Just don't forget although it may be "free" at the end of year you will get a 1099 tax form and have to pay taxes on probably a full list price $$.Anyone winning a prize with a value of $600 or more must receive a 1099-MISC for the full retail value of the prize. No discounted or sale price. Enjoy your cruise. Link to comment Share on other sites More sharing options...
Kybabe Posted July 23, 2016 #6 Share Posted July 23, 2016 I won a free Caribbean cruise on the Regal last year and it was worth every penny we had to pay!:p Link to comment Share on other sites More sharing options...
SharkieRools Posted July 23, 2016 #7 Share Posted July 23, 2016 Anyone winning a prize with a value of $600 or more must receive a 1099-MISC for the full retail value of the prize. No discounted or sale price. Enjoy your cruise. Not true, the 1099-MISC would be for the Fair Market Value of the prize. You don't have to agree with what the company states as the Fair Market Value either - you can see how much the cruise would have cost you (watch for price drops and print out any price documentation) and enter the adjustment when you do your taxes (assuming the 1099 is higher than what you could have paid for it.) A nice and simple explanation is available here: http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm Link to comment Share on other sites More sharing options...
Kybabe Posted July 24, 2016 #8 Share Posted July 24, 2016 SharkieRools, wished we had known that last April! But NEXT time I win a cruise I will know! Link to comment Share on other sites More sharing options...
IsanTom Posted July 24, 2016 #9 Share Posted July 24, 2016 Congrats! I agree on the 1099, pay fair market value only! Link to comment Share on other sites More sharing options...
Thrak Posted July 24, 2016 #10 Share Posted July 24, 2016 A free cruise? I wouldn't balk at the taxes. They really can't be all that much compared to paying for the cruise itself. :rolleyes: Enjoy! Link to comment Share on other sites More sharing options...
lovevacadays Posted July 24, 2016 #11 Share Posted July 24, 2016 Congrats! Enjoy your two weeks of cruising. Link to comment Share on other sites More sharing options...
caribill Posted July 24, 2016 #12 Share Posted July 24, 2016 So I just won a 7 day Mexican Riviera cruise on the Ruby. How? Link to comment Share on other sites More sharing options...
Pam in CA Posted July 25, 2016 #13 Share Posted July 25, 2016 (edited) Not true, the 1099-MISC would be for the Fair Market Value of the prize. You don't have to agree with what the company states as the Fair Market Value either - you can see how much the cruise would have cost you (watch for price drops and print out any price documentation) and enter the adjustment when you do your taxes (assuming the 1099 is higher than what you could have paid for it.) A nice and simple explanation is available here: http://contests.about.com/od/taxesfinances/ht/FMVvsARV.htm Yes and no. Yes, you can submit a request for a lower fair market value but it has to be either a published price or as the article says, a quote on a travel agent's letterhead. Either must be dated at the time the sweepstakes ends. It can sometimes take weeks or months to verify a winner. Edited July 25, 2016 by Pam in CA Link to comment Share on other sites More sharing options...
RJ2002 Posted July 25, 2016 #14 Share Posted July 25, 2016 A free cruise? I wouldn't balk at the taxes. They really can't be all that much compared to paying for the cruise itself. :rolleyes: Enjoy! Will depend on the person's tax bracket. Depending on the residence, could also be liable for state income taxes. Link to comment Share on other sites More sharing options...
SharkieRools Posted July 25, 2016 #15 Share Posted July 25, 2016 Yes and no. Yes, you can submit a request for a lower fair market value but it has to be either a published price or as the article says, a quote on a travel agent's letterhead. Either must be dated at the time the sweepstakes ends. It can sometimes take weeks or months to verify a winner. Yes and yes. I see you left this part out from the article: "The FMV applies to the time when you take possession of a sweepstakes prize" Not sure where the "must be dated at the time the sweepstakes ends. It can sometimes take weeks or months to verify a winner" comes from since the article clearly states"the time when you take possession." Link to comment Share on other sites More sharing options...
neverbeenhere Posted July 25, 2016 #16 Share Posted July 25, 2016 (edited) "The FMV applies to the time when you take possession of a sweepstakes prize" This is correct. If you have a 45+% combined Federal and State tax rate, the tax difference could be substantial. Edited July 25, 2016 by neverbeenhere Link to comment Share on other sites More sharing options...
weedpindle Posted July 25, 2016 Author #17 Share Posted July 25, 2016 How? Internet contest. Sites all over the place. Link to comment Share on other sites More sharing options...
Rare TracieABD Posted July 25, 2016 #18 Share Posted July 25, 2016 Wow! Congratulations! Link to comment Share on other sites More sharing options...
pixidustmom Posted July 25, 2016 #19 Share Posted July 25, 2016 Big congrats. I won a cruise with Celebrity earlier this year. So nice. When are you going?? Link to comment Share on other sites More sharing options...
iceleven Posted July 25, 2016 #20 Share Posted July 25, 2016 This is correct. If you have a 45+% combined Federal and State tax rate, the tax difference could be substantial. Taxable rate and taxable income varies, as well. Link to comment Share on other sites More sharing options...
weedpindle Posted July 25, 2016 Author #21 Share Posted July 25, 2016 So I'm wondering why some are getting all worked up over the taxes? It is certainly less money to pay the tax than to pay the listed fare, if I did not want to pay the tax, or not take that cruise I would decline the prize, and it's on me, not you. Perhaps it is sour grapes, or 'hey, lets stir the pot', as we see from time to time. The time to worry is when you win, not when I do. Link to comment Share on other sites More sharing options...
neverbeenhere Posted July 26, 2016 #22 Share Posted July 26, 2016 I don't think anyone was worked up about taxation. If the FMV on the 1099 stated $ 3,000(likely total rack rate) and your net effective tax rate is 45%, but the FMV at the time of taking possession of the prize(current listed price) was $ 1,300, one would be paying more in tax than the cost of the cruise. Link to comment Share on other sites More sharing options...
weedpindle Posted July 26, 2016 Author #23 Share Posted July 26, 2016 I don't think anyone was worked up about taxation. If the FMV on the 1099 stated $ 3,000(likely total rack rate) and your net effective tax rate is 45%, but the FMV at the time of taking possession of the prize(current listed price) was $ 1,300, one would be paying more in tax than the cost of the cruise. Tax is based on actual cost of goods/services, not some fantasy cost. 1099's can be amended. Link to comment Share on other sites More sharing options...
fishing_guy Posted July 26, 2016 #24 Share Posted July 26, 2016 (edited) Oops. Edited July 26, 2016 by fishing_guy Thick fingers Link to comment Share on other sites More sharing options...
windsor26 Posted July 26, 2016 #25 Share Posted July 26, 2016 Isn't it good to find something that the British, New Zealanders and Australians actually benefit by When anyone in those countries (unless they are a USA citizen) WINS anything even $1,000000 it is tax free Link to comment Share on other sites More sharing options...
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