meganne23;181862 wrote:I was just notified that I was a GP winner from a gerber sweepstakes. I won 50k college life plan and a check for 20k to help with taxes. the 1099 will be for 70k. But really the 50k college plan isnt worth that until 10 years from now. They said if I cashed it in 5 years early it would be worth 20k. anyone with some tax advice on this? can I pay on the 50k each year as the value grows?
Wow! I don't recall reading about this win. Cool.
I would contact a professional as everyone else suggest. However i would ask this question. - Can I consider the $50K College plan as a Fair Market Value (FMV)? The reason for this question is the current value of the prize is 1/10 the stated value of the prize on the 1099. Thereby the second year on should have a lower tax rate value to you. I don't know the answer to this but I have on two wins done a FMV on prize to pay less.
The other thing you can do, is to ask the IRS directly. I went to the local office twice with my 1099 questions. The good thing about this is they keep a record of the visit and you can get the person's name and ID number.
Congrats on the win again,
Mr. Sweepy