Welcome Guest
Log In | Register )
The time is now 1:34 pm
You last visited July 31, 2014, 1:33 pm
All times shown are
Eastern Time (GMT-5:00)

Sweepstakes Winnings - Can you offset with Scratch Off Losses?

Topic closed. 8 replies. Last post 4 years ago by GeneralShamu.

Page 1 of 1
PrintE-mailLink
Avatar
New Member

United States
Member #93648
July 4, 2010
4 Posts
Offline
Posted: July 4, 2010, 3:54 pm - IP Logged

I was recently the winner of a $1,500 sweepstakes prize and this will be reported to the IRS. I know that you can offset gambling winnings with losses on scratch off tickets.

 

Can you do the same with sweepstakes winnings?

 

I live in the state of NJ and the sweepstakes if from California.

    sully16's avatar - sharan
    Listens to the wind

    United States
    Member #81740
    October 28, 2009
    18807 Posts
    Online
    Posted: July 4, 2010, 8:49 pm - IP Logged

    ask an accountant.

    There's only one US Flag

      Avatar
      Kentucky
      United States
      Member #32652
      February 14, 2006
      5288 Posts
      Online
      Posted: July 4, 2010, 9:04 pm - IP Logged

      I was recently the winner of a $1,500 sweepstakes prize and this will be reported to the IRS. I know that you can offset gambling winnings with losses on scratch off tickets.

       

      Can you do the same with sweepstakes winnings?

       

      I live in the state of NJ and the sweepstakes if from California.

      Check the IRS website, but I don't think sweepstakes prizes are considered gambling winnings because you didn't pay anything to enter.

        RJOh's avatar - chipmunk
        mid-Ohio
        United States
        Member #9
        March 24, 2001
        17741 Posts
        Online
        Posted: July 4, 2010, 9:12 pm - IP Logged

        I was recently the winner of a $1,500 sweepstakes prize and this will be reported to the IRS. I know that you can offset gambling winnings with losses on scratch off tickets.

         

        Can you do the same with sweepstakes winnings?

         

        I live in the state of NJ and the sweepstakes if from California.

        Did you keep track of all the sweepstakes entries you bought?

        * you don't need more tickets * 
        * just the right ticket * 
           Wink 

          Avatar
          New Member

          United States
          Member #93648
          July 4, 2010
          4 Posts
          Offline
          Posted: July 4, 2010, 10:01 pm - IP Logged

          I didn't have to pay to enter this sweepstakes. I filled out a survey for something and was entered into a sweepstakes as a result...and won...

            rdgrnr's avatar - walt
            -Ridge Runner- Oracle of the Appalachians
            Way back up in them dadgum hills, son!
            United States
            Member #73904
            April 28, 2009
            14903 Posts
            Offline
            Posted: July 4, 2010, 10:24 pm - IP Logged

            I didn't have to pay to enter this sweepstakes. I filled out a survey for something and was entered into a sweepstakes as a result...and won...

            I see a red flag with filling out a survey and actually getting money.

            Did you actually receive the money?


                                                         
                                 
                                                     

             

             

             

             

                                                                                                               

            "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                        --Edmund Burke

             

             

              Avatar
              New Member

              United States
              Member #93648
              July 4, 2010
              4 Posts
              Offline
              Posted: July 5, 2010, 9:37 am - IP Logged

              It's from JD Power and Associates.

                Raven62's avatar - binary
                New Jersey
                United States
                Member #17843
                June 28, 2005
                17937 Posts
                Offline
                Posted: July 5, 2010, 10:02 am - IP Logged

                I was recently the winner of a $1,500 sweepstakes prize and this will be reported to the IRS. I know that you can offset gambling winnings with losses on scratch off tickets.

                 

                Can you do the same with sweepstakes winnings?

                 

                I live in the state of NJ and the sweepstakes if from California.

                According to the IRS' Instructions for Form 1099, sweepstakes sponsors are required to submit a 1099 form for "prizes and awards that are not for services, such as winnings on TV or radio shows" if those prizes are valued above $600.

                The IRS says you must report your sweepstakes winnings as "Other Income" no matter what the value.

                Sweepstakes prizes are not the same as gambling winnings under the IRS rules. They are reported and taxed differently.

                PS: This information is the result of my research and is not intended to be legal advice. I am not a licensed tax professional. For verification, you should consult a tax expert.

                A mind once stretched by a new idea never returns to its original dimensions!

                  Avatar
                  New Member

                  United States
                  Member #93648
                  July 4, 2010
                  4 Posts
                  Offline
                  Posted: July 5, 2010, 11:14 am - IP Logged

                  Thank you Raven62. Though this is not what I want to hear...:(

                   

                  Do you know if there is a way to write off 'Other Income' or what the tax rate is on it?