PDA

View Full Version : Tax on lottery winnings


olusojih
Nov 24, 2012, 04:42 PM
My church organized a raffle tickets sale to raise funds towards a builing project. Are we supposed to give 1099 to the winners or are we supposed to send any information about it to IRS? We already complied with the requirements of the city where the church is located which says we can only hold 60% of the tickets sold and that 40% should go to the winners.

Fr_Chuck
Nov 24, 2012, 05:39 PM
What is the value of the prizes.

AtlantaTaxExpert
Nov 25, 2012, 05:41 AM
Fr Chuck has the right idea.

A Form 1099 of some type mustb be sent to the IRS and the individual if the prize eceeds a set amount, which I believe is $1,200.

joypulv
Nov 25, 2012, 05:51 AM
The form is W-2G, and is sent to both the winner and the IRS, IF the winning amount is over $600 more than the cost of the raffle ticket, AND if the payout is at least 300 times the cost of the ticket.
You also have to withhold 25% from individual winnings if they are greater than $5,000 (above the cost of the ticket) and report that on the W-2G too.
(You should be able to print out the forms from IRS.gov.)
The deadline for sending to the winners is 1/31 and to the IRS is the last day of February.

olusojih
Nov 25, 2012, 08:51 AM
This is very helpful. Thanks so much.