Which winnings go on a 1099 Tax form?

[andrewtoo]

@AARPTeri 

I have read in the official rules of the Sweepstakes and the Instant Win Games that prizes at or above $600 in a calendar year require that the member sign tax document and will receive a 1099 tax for that year.  Also, it refers to "games of chance" and does not mention redemption of points.  I have not been able to find the official rules for points-only redemption transactions.

Are point redemptions included on 1099 tax reporting through the end of year like the winnings at or over $600 for instant wins and sweeps in total for the year?

I know this may seem like a technical question, but, maybe there is somewhere on the site that explains what will appear on a 1099, specifically concerning point redemptions.

Also, the black banner at the top left of the rewards pages shows all "Savings" and I would need to know the "Savings" for the year because I can't seem to figure out how much I have "saved" in this year or last year.  I can't figure the winnings and point redemptions from the transaction history alone.  I have searched my emails for instant wins and still can figure out the total and when I won the instant wins.

I was a winner in one of the smaller sweepstakes (far less than $600) this year, but, the total makes a difference.

It would be nice for any of us to know if the points-only for gift cards transaction would be included on a 1099 form or not.  This would tell us whether or not the transactions are taxable.  Maybe this is a helloWorld question, but, a concern nonetheless.

Thanks so much!

[gm5271]

@andrewtoo 

Hey Andrew

Glad your in knowledge of info you needed & wasn't the issue/concern I perceived

Yep prepared taxes for most of my life usually as a side job to regular one. Therefore when read your posts I felt it was something of great concern to you so wanted offer help. Glad you didn't need help & alls good

Glad y'all knew about the Merkle & Hello World... hadn't seen your posts but checked out your link @rednexsrus Lucy hope you'll have no future issues with them(hello/merkle) Hello left bitter taste to me early on... good luck!

I no longer read every post written nor am I subscribed to entire Rewards Community.... made that decision once they split it into 3 headings... just get emails related to my posts which is blessing in disguise since they all go to spam now.... reckon I'll go back to the "shadows" checking in to read once in while 

Take care Stay safe

Enjoy your day! 

Ginger  :  ) 

[en2576]

Did you ever find out if your total winnings and savings adds up to over $600 for the year, is it taxable?  Thanks 

[rednexsrus]

Ginger, Got a tip on how to get an email when someone replies to my post. I have it checked in my profile but never see an email
Thanks

[gm5271]

@rednexsrus 

Lucy 

My experience is always make sure that the box is checked when you post that'll ensure you get emails if anyone replies to your post (see below screenshot) BUT at this time all my emails from Community are going to spam have you checked there? Hope helps

Ginger  ;  ) 

PS : If you want to get all posts of say "Redemption" Forum you need subscribe to it at top of forum 

Pic of Post box 

[rednexsrus]

@andrewtoo 

Good topic Andrew, my black banner savings total is approaching dangerous 2020 1099 territory (the $600 figure) and I would certainly like to know where I stand.  

Not sure if your reference to HelloWorld was intended as a pun, but just so you know the current Administrator is  (Administrator: Merkle, Inc., 3000 Town Center, Suite 2100, Southfield, MI 48075.)

Thank the Lord we no longer have to deal with you know who 😡

Just Saying

[gm5271]

@rednexsrus @andrewtoo 

Lucy & Andrew my curiosity was peaked by your posts so checked out

Offical rules do now state "Merkle" BUT "Hello World" was brought out by Merkle in 2018 before New AARP  Rewards started so they are same company.... no clue why they changed to listing Merkel... possibly because all upset with Hello World but just a diversion I'd say

Enjoy your day 

Ginger  ;  )

[AARPTeri]

@andrewtoo  and @rednexsrus 

Points Only Redemption are not “Games of chance” and are not considered prizes, therefore they do not count toward the $600 calendar year requirement for 1099s.

Your savings total shows ALL savings including Sweeps, Instant Wins and redemptions.

[andrewtoo]

@AARPTeri 

Thanks for the prompt response.  It is unclear how much of our "Savings" shown in the black banner could end up on a 1099.  However, reading your response that points-only purchases are not taxable is really WONDERFUL😁.  The vast majority of my "Savings" are from these point purchases.  I would normally believe that using reward points would not be taxable (such as a credit card rewards program).  The black banner made me wonder. 

I don't know for sure how to keep track unless I record instant wins and sweepstakes wins elsewhere.  I can't account for $20 of my total savings at the moment.  I have used the transaction history to find point purchases and scanned emails for confirmations of instant wins.  It would seem that few of us may need to track this information as closely as I should.

Thanks so much!

[gm5271]

@andrewtoo 

Hey Andrew

From my past experiences doing taxes and having a couple of Sole Proprietors businesses....I don't think you really need to be concerned unless you win a Big Huge Prize 

Tax rules have been $600 limit for 1099's long as I can recall... also old Rewards had same rules. 

State Lotteries do same thing... Anytime person wins a prize above $600 that is recorded and reported but a person could win $100 Ten times equal to $1000 but those tickets are cashed in at store locations nothing recorded or reported on winner .... So as I said I'd truly not be concerned unless you win a prize over $600 Also most retired folks don't have super high income many don't even have to file taxes therefore they could win amounts that wouldn't be above taxable income limits... think its around $30K these days 

So truly I think most anyone should be okay with winning most all prizes offered in Rewards without owing taxes... they might possibly get a 1099 but that doesn't mean they'll owe taxes especially if that's the only taxable income they have.... Social security isn't taxable until you go over the Limit for taxable income. That's reason lots of Seniors choose work part time... stay under limit will owe no taxes. 

Hope I've helped and not further confused

Just don't desire see you concerned or stressed about this issue

Take care 

Ginger  ;  ) 

[andrewtoo]

@gm5271 

Thanks for your input.  You can learn a lot by preparing taxes.

One point I think is important, though.  In the sweeps and instant win Official rules Section 5 (Sweepstakes) and Section 6 (Instant Wins), it appears that both winning a prize with a value at or above $600, or if our total wins reach that amount in 2020 then a 1099 will be generated.

"...if the value of the prize is equal to $600 or more (or if the cumulative value of all prizes
won through the AARP Rewards Program in 2020 is equal to $600 or more)..."

"...Winners of prizes will only be required to complete one (1) Declaration each calendar year for prizes won through chance-based games included in the AARP Rewards Catalog, and will receive one (1) IRS Form 1099 reflecting the total value of all prizes awarded during the calendar year."

So, It appears clear to me that if you win instant wins or sweeps in the amount of $600 or more then they will ask for you to fill out paperwork and a 1099 will be generated to include the winnings through all "chance-based games" for that year.

Frankly winning $600 or more in sweeps and instant wins is a good problem to have, considering the points-only purchases are not taxable, and therefore, not included on a 1099.

Also, I had researched the Merkle/HelloWorld name change in the Official Rules and found an article about Merkle buying HelloWorld and posted about it in the community here: https://community.aarp.org/t5/Earn-Activities/10-Amazon-Gift-Card-for-22-000-Points-May-Extra-Credit... 

Thanks!

[rednexsrus]

@andrewtoo @gm5271 @mi4090 

I read all the comments concerning our administrator (Merkle) and went back to early May post as Andrew mentioned and was surprised at all the post there about HelloWorld & Merkle. Some of the post were mine, but for some reason I missed the fact that they are one and the same. This revelation to say the least is very upsetting to me as my experience with HelloWorld Is beyond offensive. I had a very unpleasant encounter with their customer service department over a AARP Carnival Cruise Sweepstakes Win. I just hope nothing happens any time soon that may warrant me having to contact these people again.

Just Saying

[rednexsrus]

@andrewtoo @gm5271 @AARPTeri 

Appreciate all the feedback on the 1099 subject. Ginger and Andrew y’alls explanation has convinced me I have nothing to be concerned about. My AARP Savings earned, plus my SSAN benefits are not enough to generate a 1099. 

Teri, thanks for your quick reply on this subject. 

Have a nice day 😉