Quote:
Originally Posted by OrbitalEllipses
So the W-9 is not pertinent to whether or not this is going to cost winners $tax? You'll have to excuse my dire lack of tax/IRS knowledge.
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You'll have to include it in your taxable income next year, and you'll pay your effective tax rate on it for both federal and state (if you have it) just as if it was paid by your employer with no withholding.
So, really you are getting a deeply discounted trip, not a "free" trip. In my case, I'll effectively pay around 30% of the value with Fed/State taxes.
At least, that has been my experience in the past.
DISCLAIMER: BTW, for those that may think otherwise, I am in no way whining, complaining, or have any other negative remarks about SCION for this. I think it's one hell of a great thing to do. I just want to be sure all my fellow First 86'ers know this piece of the story so they aren't caught off guard (or worse have to explain it to their +1 next tax season!).