It's that time of year again. The fall is upon us and it's time to remind you all of the yearly contest. If you haven't started writing, you should.
https://storiesonline.net/contest/halloween-2022
It's that time of year again. The fall is upon us and it's time to remind you all of the yearly contest. If you haven't started writing, you should.
https://storiesonline.net/contest/halloween-2022
I'm curious as to whether the $500 prize could be a problem if the winner is outside the US (or maybe Canada as well). Will it need to be taxed? Authors below the Income Tax lower limit should be ok, but what about those above that limit?
Maybe I'm seeing problems where none exist.
this more comes down to whether a 'prize' is 'taxable'.
here they are not but I don't know about elsewhere
I'm curious as to whether the $500 prize could be a problem if the winner is outside the US (or maybe Canada as well). Will it need to be taxed? Authors below the Income Tax lower limit should be ok, but what about those above that limit?
Maybe I'm seeing problems where none exist.
In Michigan, USA you have to claim and pay taxes on any prize valued over $600 and for the federal (IRS/USA) you pay taxes on any prize valued over $5000.
you have to claim
No, you're SUPPOSED to, but you don't HAVE to. There is a difference. Is there a paper trail to back things up? Yes? Then report it. No? Huh, I don't know WHERE that money came from.
I deal with that all the time because I'm a 1099 contractor since I'm a Realtor (tm). Did I get a full commission from selling a house? Yep - it's on a 1099, so it gets reported. Did someone give me $500 cash so I'd list their house on the MLS? Actually, yes, THAT gets reported. Did someone give me $200 for helping clean their house before I listed it? What $200? Same thing applies with my casino fun. Did I get a W-2G because I happened to win $5,000 playing poker, when I bought in for only $400? No? Huh - damned shame I lost my $400 that night, then, to offset any W-2Gs I might end up getting.
for the federal (IRS/USA) you pay taxes on any prize valued over $5000.
Actually, on any amount. From H&R Block's site:
Did you know taxes on winnings should be reported as ordinary income? Yes, it's true. Generally, the U.S. federal government taxes prizes, awards, sweepstakes, raffle and lottery winnings, and other similar types of income as ordinary income, no matter the amount.
Here's the link to the site: https://www.hrblock.com/tax-center/income/other-income/taxes-on-prize-winnings/
Does it have to be posted all at once? Or can we post it in sections?
It can be in sections and chapters, but all have to be submitted in one submission.