forms 1099
is it possible to pay income taxes on a jet ski that was won from work at the end of the year with a misc. income form 1099 if I am a full time employee?
Asked on 7/03/06, 5:53 pm
1 Answer from Attorneys
Thomas Shigo
The Shigo Law Firm, P.A.
Re: forms 1099
The value of a prize won must be included in your gross income. Since this not earnings or wages it is reported to the IRS on form 1099 with a copy provided to you. This must be reported on your tax return. The IRS will match your return with W2s and 1099s to verify that is was included. If you do not, the IRS will eventually catch this mismatch and you could owe back taxes with penalty and interest.
Answered on 7/10/06, 10:38 am
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