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Free Prize Created A $237 Tax Bill

Monday, April 18, 2011 - 3:06 PM
Anyone who has received a checking account bonus in which the bonus was reported to the IRS should find this story humorous.

From the Houston Chronicle:
On last year's Astros' fan appreciation day, the 56-year-old won 315 coupons from Shipley's Do-Nuts, each worth a cup of coffee and either a free doughnut or a dozen doughnut holes. However, he later received an IRS Form 1099 stating that he owed taxes on his prize, which was valued at $927.61.

That's why a cash bonus is always better than a gift bonus. Have you ever received a non-cash bank bonus that was way overvalued in terms of what was reported to the IRS?
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,633