If you win a gift card do you have to report it?

[lillymarlene]

This has not happened to me, but I am just curious. On my Walmart, for example, receipts if you go online and complete a survey, it is possible to win a $1,000 gift card. Hasn't happened, but what if it did? I am 9/48 months in an active 13. If I used this for its purpose, purchase of items from Walmart, would this be counted as income, where I would have to inform my lawyer to inform the trustee?

Then, what if I sold the certificate for 1/2 value, $500 on an auction site instead, would I have to report that?

Like I said, hasn't happened yet, but you never know.

[steveok]

I think you would be safe...they are looking for larger sums I think

[LadyInTheRed]

I agree that most trustees are looking for larger sums and permanent increases in income. But, if I won such a thing, I'd let my attorney know so he could determine if the trustee should be informed.

[lillymarlene]

Thanks.

[Flamingo]

If you won a gift card of value over $600, you will receive a 1099 from the store and you will have to claim the amount of your winnings/gift on your taxes for that year. If your trustee reviews your tax returns each year (most people have to provide theirs to the trustee each year within a specific period of time after filing), your trustee will see the increase in your income.

If something like this occurs, it is always best to consult with one's attorney before playing guessing games and getting in trouble later.

[lillymarlene]

Thanks Flamingo. Oh well, I hope any of my winnings are $599. :-)

[espo1357]

This has not happened to me, but I am just curious. On my Walmart, for example, receipts if you go online and complete a survey, it is possible to win a $1,000 gift card. Hasn't happened, but what if it did? I am 9/48 months in an active 13. If I used this for its purpose, purchase of items from Walmart, would this be counted as income, where I would have to inform my lawyer to inform the trustee?

Then, what if I sold the certificate for 1/2 value, $500 on an auction site instead, would I have to report that?

Like I said, hasn't happened yet, but you never know.

I wouldn't report anything.

They get my tax returns, and that should cover everything.

And if they have a problem with that, then explain.

In a 13, it is best to just make your payments on time, and stay under the radar as much as possible.

[lillymarlene]

I wouldn't report anything.

They get my tax returns, and that should cover everything.

And if they have a problem with that, then explain.

In a 13, it is best to just make your payments on time, and stay under the radar as much as possible.

I basically agree, but if the store that held the drawing handed out a 1099 for something over a certain amount, I'd be afraid that this would have to be reported on my tax return anyway.

[AngelinaCat]

I was going to say, and still will, that the typical gift card one gets for a birthday, Christmas, or even Retirement, is usually around $25.00, or so, and with that, I would say nothing.

Now, in the unlikely event that I would win a large dollar amount, I would ask my attorney about it, as he she knows best the 'temperature' of the district and particular trustee you are dealing with. If you do get a 1099, and have to submit your income tax paperwork each year, then include it.

Good wishes to you.

[Flamingo]

I wouldn't report anything.

They get my tax returns, and that should cover everything.

And if they have a problem with that, then explain.

In a 13, it is best to just make your payments on time, and stay under the radar as much as possible.

Staying under the radar in a 13 is always good; however, not reporting a bonus, winning a large gift card, winning the lottery, getting a raise, etc., etc. and then the trustee finds out and suddently staying under the radar turns into flying in the spotlight. When we filed, our attorney advised us to always comply with requirements and we will successfully complete our 13 and those requirements included reporting any of the above. I reported a $3,000 amount I received from a former employer that was owed me from previous years for unpaid sick and vacation time. The amount would have been included in my taxes and by reporting it, I covered the situation, and, surprisingly, got to keep it all. If I hadn't reported it, the situation may have turned out differently... Never guess as to financial stuff in an active Plan - always check in with your attorney.

[espo1357]

Staying under the radar in a 13 is always good; however, not reporting a bonus, winning a large gift card, winning the lottery, getting a raise, etc., etc. and then the trustee finds out and suddently staying under the radar turns into flying in the spotlight. When we filed, our attorney advised us to always comply with requirements and we will successfully complete our 13 and those requirements included reporting any of the above. I reported a $3,000 amount I received from a former employer that was owed me from previous years for unpaid sick and vacation time. The amount would have been included in my taxes and by reporting it, I covered the situation, and, surprisingly, got to keep it all. If I hadn't reported it, the situation may have turned out differently... Never guess as to financial stuff in an active Plan - always check in with your attorney.

But, a gift card is awfully hard to track.

My impression is that, once you are confirmed, they are not going to make things difficult for you. First, they are making money with you in the plan (trustee), and the creditors are getting something too.

Then again, it is better safe than sorry. And running it by your attorney is not a bad idea. I have done this, and my attorney said all was good, and to just be sure to make my payments on time.

[lillymarlene]

Thanks Angelina, espo and Flamingo, and anybody that replied. I agree, it looks like the safest thing to do would be to ask my attorney about any winning over $599, especially if my ss number is ever needed to collect the winnings or use the gift card.

[AngelinaCatHub]

I personally don't think a Trustee will bother. How would you convert that into currency? A gift card could only be used at Walmart or whatever store gave it. The Trustee would not bother with an attempt to turn it into cash. Use the card for exempt stuff and what could he say? 1K is petty if he would bark at that little amount. Now winning the lottery might be a bit different, but then you could afford to pay all off and abandon the C13. 'Hub

[lillymarlene]

I personally don't think a Trustee will bother. How would you convert that into currency? A gift card could only be used at Walmart or whatever store gave it. The Trustee would not bother with an attempt to turn it into cash. Use the card for exempt stuff and what could he say? 1K is petty if he would bark at that little amount. Now winning the lottery might be a bit different, but then you could afford to pay all off and abandon the C13. 'Hub

Well, I guess if you're going to win, it's best to win big! LOL

[Flamingo]

But, a gift card is awfully hard to track.

My impression is that, once you are confirmed, they are not going to make things difficult for you. First, they are making money with you in the plan (trustee), and the creditors are getting something too.

Then again, it is better safe than sorry. And running it by your attorney is not a bad idea. I have done this, and my attorney said all was good, and to just be sure to make my payments on time.

Here's the difference between getting a gift card from a friend and getting winning a gift card from a company. The company is obligated to report those winnings to the IRS and the recipient is issued a 1099 for the amount of the gift card if the amount is over $600. You are obligated to report those winnings on your taxes. If your friend goes and purchases a gift card for you and hands it to you as a gift, you will receive no 1099 from your friend.