NFFC Payment Plans For 2008

Greg Ambrosius · Post by **Greg Ambrosius** » Wed Dec 03, 2008 5:25 am

Originally posted by King of Queens:
You can apply your winnings as a credit towards a future contest, but the full amount is still reported to the government?

Is there any perk to this interest-free loan other than "convenience"? Convenience. That's it. If you won $1250 and want to apply $1300 to next year's NFFC or NFBC, we can do that now more easily. Again, no problem if you don't but some folks might want to transfer the money in that case and roll the dice for another year.

It also might be easier for some folks rather than showing their spouse the money now and asking for permission in August.

King of Queens · Post by **King of Queens** » Wed Dec 03, 2008 5:28 am

Originally posted by Quahogs:
quote:Originally posted by King of Queens:
You can apply your winnings as a credit towards a future contest, but the full amount is still reported to the government?

Is there any perk to this interest-free loan other than "convenience"? '08 tax deductions on 08's winnings ? [/QUOTE]Probably not. My guess is that the payments (or 2009 credits) that are processed next week will appear on a 2008 1099-M. Anything beyond that will not be reported until 2009. Thus, credits OR payments from this December's league playoffs, Championship, Consolation, etc. will not be a factor until April 15, 2010.

King of Queens · Post by **King of Queens** » Wed Dec 03, 2008 5:30 am

Originally posted by Rob B:
Winnings above a certain level will be reported to the IRS, no matter if you get paid now or apply it somewhere else. There is no way around that for the providers.

KOQ - pure convenience to the player if they choose that option and no other benefits. Unless it's a free entry -- the cash value of that prize has never been reported. Using winnings as a credit towards next year may feel like a free entry, but you'll have to deal with the tax effects.

King of Queens · Post by **King of Queens** » Wed Dec 03, 2008 5:31 am

Originally posted by Greg Ambrosius:
It also might be easier for some folks rather than showing their spouse the money now and asking for permission in August.

Bingo -- there's the added benefit.

Quahogs · Post by **Quahogs** » Wed Dec 03, 2008 5:33 am

Originally posted by King of Queens:
quote:Originally posted by Quahogs:
quote:Originally posted by King of Queens:
You can apply your winnings as a credit towards a future contest, but the full amount is still reported to the government?

Is there any perk to this interest-free loan other than "convenience"? '08 tax deductions on 08's winnings ? [/QUOTE]Probably not. My guess is that the payments (or 2009 credits) that are processed next week will appear on a 2008 1099-M. Anything beyond that will not be reported until 2009. Thus, credits OR payments from this December's league playoffs, Championship, Consolation, etc. will not be a factor until April 15, 2010. [/QUOTE]Payments now (dec 08) for a contest held in mar 09 can't be deducted from 08 winnings ? Wouldn't this form (transferring $ which will be issued under a 1099-m for '08) be proof of pay't in dec 08 ?

Raiders · Post by **Raiders** » Wed Dec 03, 2008 5:33 am

Originally posted by King of Queens:
quote:Originally posted by Greg Ambrosius:
It also might be easier for some folks rather than showing their spouse the money now and asking for permission in August.

Bingo -- there's the added benefit.

[/QUOTE]Glenn I hope YOU have a good accountant?

John

King of Queens · Post by **King of Queens** » Wed Dec 03, 2008 5:41 am

Originally posted by Quahogs:
quote:Originally posted by King of Queens:
quote:Originally posted by Quahogs:
quote:Originally posted by King of Queens:
You can apply your winnings as a credit towards a future contest, but the full amount is still reported to the government?

Is there any perk to this interest-free loan other than "convenience"? '08 tax deductions on 08's winnings ? [/QUOTE]Probably not. My guess is that the payments (or 2009 credits) that are processed next week will appear on a 2008 1099-M. Anything beyond that will not be reported until 2009. Thus, credits OR payments from this December's league playoffs, Championship, Consolation, etc. will not be a factor until April 15, 2010. [/QUOTE]Payments now (dec 08) for a contest held in mar 09 can't be deducted from 08 winnings ? Wouldn't this form (transferring $ which will be issued under a 1099-m for '08) be proof of pay't in dec 08 ? [/QUOTE]I don't believe F&W will include those transfers on your 2008 1009-M. They would need to process the transfer prior to December 31, 2008. Based on past payment history, I doubt it'll happen. Thus, the transfer would appear on your 2009 1009-M.

Talk to your accountant and see what you can do. If the only "proof" is the 1099-M, you're probably out of luck.

Ted's Cracked Head · Post by **Ted's Cracked Head** » Wed Dec 03, 2008 5:51 am

I think it all depends on when you get paid, not when you won.

I believe you could ask F&W to pay you in 2009 if that would work out better for you tax wise?

The big prize went out in January allowing me the chance to put off paying the IRS the 32K for another 15 months. That was helpful.

Even more helpful was losing money in 2007, when I got paid.

[ December 03, 2008, 11:53 AM: Message edited by: Rob B ]

Quahogs · Post by **Quahogs** » Wed Dec 03, 2008 6:28 am

If I know for SURE the 5k will make the dec 31 cutoff and be on 2008's 1099-m then the transfer for '09 contests would lower my taxable income for '08. I think Greg said he's trying to make this happen. Guess I'll just have to wait and see...