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Marshfield, Ma, USA

    In the mail today arrived a 1099-Misc. for my $600 prize won at the Topsfield Fair for fifth place. Now this is something new! I had never won enough money before to consider the prize taxable. I’m moving on up in the ranks, a new career milestone lol.

1/31/2018 3:47:40 PM

Little-TON - Colorado

Did the club or the IRS send you that?

1/31/2018 3:57:59 PM

Marshfield, Ma, USA

Actually it was the fair where the pumpkin was weighed. According to IRS rules,any prize won with a value above $600 is taxable.

1/31/2018 4:21:17 PM

Little-TON - Colorado

Thanks for the response

1/31/2018 4:49:55 PM

Buffalo, MN (Billsbigpumpkins@hotmail.com)

tell the fair to make it $599

1/31/2018 6:00:28 PM

Johnston, R.I.

Congrats....

1/31/2018 6:16:01 PM

Oak Grove, Mn

Bill has the right idea...a $599 prize nets you more than a $600 prize. I wonder how many pumpkin growers save receipts to prove that they spent more to grow the pumpkin than what they won for prizes. If the IRS is taxing the prizes..shouldnt we be able to deduct the expenses..even on years we don't win?

1/31/2018 6:32:11 PM

sevierville, Tn

yes we should. save the receipts. Mileage is a big one.

1/31/2018 6:45:53 PM

Hanson Ma

I think I know a tax guy who can figure out how to save you the money ;-).

1/31/2018 8:01:56 PM

Rudolph

Save every receipt, gas, mileage,fertilizer,water bill everything, treat it as a business otherwise you'll never come out ahead

1/31/2018 10:55:09 PM

Dillonvale, Ohio

I asked the question about deducting expenses for a hobby on Facebook, everyone said yes, just have to show proof. One person is going to talk to her boss, a CPA. Guess I have to see what kind of proof I have for buying seeds

1/31/2018 10:55:55 PM

Pittsburgh, PA

You most certainly can offset any winnings with expenses. It’s just like being the sole proprietor of a business.

1/31/2018 10:59:08 PM

Eugene,OR

To do it properly you need to file a schedule c with your tax return.

2/1/2018 12:52:31 AM

Owensboro, Ky.

P/neer it was not above $600...so no worries! Lottery winnings of $600 are not taxable, over $600 are taxable! If your winnings at the weighoff is $600, you should not have to report it or pay any taxes on the $600! Lottery system does not send you a 1099 form until "OVER" $600. I would suggest you ask a professional, as I am not one!!! Peace, Wayne

2/1/2018 1:54:31 AM

Billerica,Massachusetts

make sure you deduct all the water and fertilizer it cost you to make the $600.00

2/1/2018 7:03:52 AM

Ontario, Canada

Glad we don't have that issue here in Canada. Prize money & lottery winnings are free of taxes, but you have to pay tax on any interest you make from that lottery & prize money.

2/1/2018 7:23:20 AM

Marshfield, Ma, USA

Thanks for the tips guys. I've got the tax part covered.As I posted earlier, I consider this a new pumpkin growing milestone. I hope I get another and bigger 1099 next year.

2/1/2018 8:07:30 AM

NE Arkansas

Wayne every state is different on how much is taxed, Some are $600 some are $1000, by spreading wrong info you can cause someone serious issues.

Now Pumpkineer, we have a farm id to be able to deduct all expenses, mileage, and depreciation to offset any taxable income

2/1/2018 2:24:43 PM

North Smithfield, RI

Will we have to pay sales tax on the seeds we buy at auction ?

2/1/2018 7:39:17 PM

Owensboro, Ky.

Mr. Lindley sir...my bad...again. Was not trying to cause any issues for anyone. Can you post a state by state list on how much b/4 taxes are assesed? I just got finished w/my tax forms for this year & thinking that 1099-R are taxable, and 1099-Misc are not taxed. Would certainly advise to ask your tax person. Peace, Wayne

2/2/2018 2:25:09 AM

NE Arkansas

If you don't know then why even comment Wayne? Maybe you could use your time to compile a list and actually put factual data on here instead of random giberish

2/2/2018 11:56:09 AM

Weatherman

Maybe Ken can open up a new message board on tax preparation.

2/2/2018 1:22:30 PM

Bethlehem CT

The first time I got a tax form I was not happy to say the least. The government won't be happy until they take the fun out of everything! They have no idea how much money we spend growing these things. Once again they (the government) are opening up a can of worms that they have no clue about. They won't be happy until they can track every dollar you earn and find a way to tax it two to three times over. It ticks me off double when I hear that they don't do this in Canada. GRRRRRRR!!!

2/2/2018 4:35:54 PM

Bethlehem CT

So now.... it's no longer just about being able to grow giant pumpkins, we have to either study up on the tax code or have an accountant help us. The day is coming when you will pay taxes on the garden produce that you grow. Sounds crazy but I fear it will happen... Sooner or later.

2/2/2018 4:41:12 PM

sevierville, Tn

IRS requiorment is a 1099 at 600 or more.
i report all income and expenses so there is no issue.
Growing is expensive, so there really isn't much tax involved ! LOL

Canada, wow, i'm moving there if i ever win the lottery !

2/2/2018 4:53:00 PM

Upa Creek, MO

Jane Phil, I’m assuming Canada has a big lotto like our Powerball, and if you were to win 500 million you’d pay nothing and get the full payout? That’s insane if the case.

2/2/2018 5:55:42 PM

Team Canuckle Heads

Ya they don't tax our lottery winnings but they tax the shit out of us 3 times over what you guys pay in the US. That's why our gasoline is $5.10 a gallon compared to the $2.75 I paid for it state side a couple weeks ago. Our sales tax is 13% compered to 5% in Michigan and it goes on and on. The income tax we pay would make you guys shit. Ya I wouldn't get too excited about the tax you pay on your lottery winnings. If we paid the same taxes it would be like winning a lottery.

2/2/2018 6:21:03 PM

Torrance, Ca.

I just keep taking 10th place or higher, no tax then.:)

2/2/2018 9:50:46 PM

When you consider how much the government takes in the first place , why should it take more ?
Not even taxes on horse racing <bingo etc.
The government talked about taxing winnings a number of years ago and did they ever get blasted for being greedy.

Check and see how much is taken out beforehand between state and federal and then ask why add more tax to winnings.

2/2/2018 10:18:00 PM

Upa Creek, MO

Thanks Zeke, makes sense. Taxes are very complex here state by state. Maybe someone with dual citizenship close to our border can buy gas in the US and lotto in Canada? Jk

Lol, SoCal Chris

2/2/2018 10:20:03 PM

Ontario, Canada

Zeke is right on there. Income taxes (federal & provincial) are brutal. Depending on your income, you could be paying anywhere from 20% - 46% of your paycheck out to the 2 levels of governments. That along with a 13% sales tax on almost everything you buy, sin taxes on booze, smokes & soon marijuana, carbon taxes on gas, oil, etc. & more. Crazy stuff. Here in Canada, the Government wins the lottery every time we get our paychecks.

2/3/2018 9:13:05 AM

I believe there was an American that hit a jackpot in Canada and ended up moving to avoid paying tax.
There are people living on the border that do cross it to buy gas and other daily things depending on which side has the cheapest price.

2/3/2018 10:27:22 AM

Team Canuckle Heads

Ya I've been in Chicago a few times recently (my daughter was living there). A case of Bud Light cans was $13. The same case here is $42.

2/3/2018 11:47:38 AM

Upa Creek, MO

That’s an expensive booze tax. A case here is 24 beers, but $13 is probably a 12 pack of Bud now. Case runs around $20. Chicago is expensive too, at least I think so when I visit family. When you get out in the boonies here away from the cities you can find 12 packs for $5.99. I fish about 2x a month right now and load up on beer at small town gas stations after each trip. lol

2/3/2018 12:40:25 PM

Team Canuckle Heads

nope that was a case of 24 cans at the grocery store and that was at Christmas less than 2 months ago.

2/3/2018 2:02:41 PM

Gays Mills, Wisconsin

Dilly Dilly I want to know the name of that grocery store!

2/3/2018 6:32:18 PM

Team Canuckle Heads

I couldn't live there. I'd be a puddle in no time!

2/3/2018 7:05:21 PM

Zimmerman, Minnesota

$42 for a case of Beer...that’s not right.....I think it’s time for history to repeat itself.....Wallaceburg Beer Party (Boston Tea Party)..... intercept those semi trucks and dump it......lol.....no but really I would have to drink water...maybe....what is a case of water $15?? Unreal yah!!!

2/4/2018 9:30:38 AM