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Subject:
Tax due on prize money by disabled citizen.
Category: Business and Money Asked by: hotomato-ga List Price: $5.00 |
Posted:
18 Mar 2005 09:09 PST
Expires: 17 Apr 2005 10:09 PDT Question ID: 496768 |
I have been on Disability for a little over 7 years. I am permanently disabled. I just won a $1000.00 prize from EBay. I don't file a yearly tax form. How do I go about reporting the prize and paying the tax. How do I find out what the tax on this prize is? Thank you for your help. |
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Subject:
Re: Tax due on prize money by disabled citizen.
Answered By: richard-ga on 18 Mar 2005 09:36 PST Rated: |
Congratulations At first I worried that your prize might be part of some scam, but I see Ebay is running a $1,000 contest. Just make sure your email and Paypal information is definitely going to them and not to any third party. You don't have to do anything immediately tax-wise. Assuming your prize is paid to you this year (I gather they will deposit the funds into your Paypal account), you will receive a Form 1099-Misc from Ebay in January 2006. http://www.irs.gov/pub/irs-pdf/f1099msc.pdf If even with that $1,000 your 2005 income is small enough that no tax is due, then you won't need to file. I'd suggest that you fill out a tax return with your income information next year, to make sure that the tax comes up zero. You don't need to worry about estimated tax or withholding this year, because one of the exceptions is that if you owed no tax in 2004, you needn't worry about withholding or estimated tax in 2005. Search terms used: 1099-misc site:irs.gov Thanks for letting us help, and again, congratulations Google Answers Researcher Richard-ga | |
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hotomato-ga
rated this answer:
and gave an additional tip of:
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Thank you for your answer. I am sorry that I only just noticed that I had additional answers and comments. I appreciate the time you took to answer and the thouroughness and clarity of your answer. |
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Subject:
Re: Tax due on prize money by disabled citizen.
From: david1977-ga on 18 Mar 2005 14:19 PST |
Congradulations, I myslef tried to hunt down some of the clues. But with no luck. The scas were running rampet on this one. Auctions were getting shut down left and right do to certain illegal postings. |
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