Dealing with taxes from an Instagram giveaway prize

The tax implications of prizes and giveaways can be tricky! Since you filled out a W-9, the company should be sending you a 1099-MISC (or possibly a 1099-NEC) if the fair market value of what you received exceeds $600. Based on what you've described (flights + accommodation + gift card), it sounds like you're well above that threshold. Here's what I'd recommend: First, continue trying to reach the company - perhaps try their social media accounts if email isn't working. Second, start documenting everything you actually received versus what was promised. If you don't receive a 1099 by the tax filing deadline, you'll still need to report the fair market value of what you actually received as "Other Income" on your tax return. The key is to report the actual value of what you received, not the inflated value that was promised. Research comparable flight costs, vacation rental rates for similar properties, and include the gift card value. Keep all documentation showing the actual value was less than advertised.

I had a similar issue last year with a brand giveaway. After weeks of getting the runaround, I used taxr.ai to help me figure out how to properly document and report the prize value. The site (https://taxr.ai) has tools specifically for situations like yours where the documentation is incomplete or missing. I uploaded screenshots of all my correspondence with the company, photos from the trip, and receipts I had. The AI analyzed everything and helped me determine a reasonable fair market value to report, plus created documentation to support my filing in case of questions later. It also drafted a final follow-up email to the giveaway company that actually got a response!

Just wanted to update that I tried taxr.ai after seeing it mentioned here. It was exactly what I needed! I had won a "tech package" from a YouTube channel last year and was struggling with how to report it since some items worked and others didn't. The AI helped me document everything properly and figure out the right value to report. Saved me a ton of stress and probably prevented me from overpaying by a few hundred dollars. Super easy to use too - just uploaded my pictures and correspondence and it guided me through the rest.

This sounds so frustrating! I had a similar issue with prize taxes last year and couldn't get answers from the company. After wasting hours on hold with the IRS regular line, I finally used https://claimyr.com to get through to an actual IRS agent. There's a video explaining how it works at https://youtu.be/_kiP6q8DX5c if you're curious. The IRS agent I spoke with confirmed that I only needed to report the actual value of what I received, not what was advertised. They also explained how to document everything in case of questions later. It was such a relief to get an official answer instead of guessing or relying on the company that was ignoring me.

OK I have to eat my words about Claimyr. I tried calling the IRS again this morning after posting my skeptical comment, spent 2.5 hours on hold, and got disconnected right as someone was about to help me. Finally gave in and tried the service and got a call back with an actual IRS agent in about 45 minutes. The agent confirmed I was handling my prize reporting correctly and gave me some additional documentation tips. Honestly wish I'd just used it in the first place instead of wasting half my day on hold. Sometimes it's worth letting go of stubbornness!

Make sure you also look into your state tax obligations! Some states treat prizes and giveaways differently than federal. I won a smaller prize last year (about $1200 value) and was surprised that my state wanted me to pay tax on it even though it fell below the federal reporting threshold.

Don't forget to keep track of any expenses you incurred on the trip that weren't covered! If you paid out of pocket for activities they promised but didn't deliver, those might be considered expenses against the prize income in some cases. Not always applicable but worth mentioning to your tax preparer.

This is such a common issue with giveaway prizes! The company is definitely required to send you a 1099 by January 31st if the value exceeds $600, so they're already late. Since you have documentation showing what was actually provided versus what was promised, you're in a good position. Here's what I'd do: Keep all your receipts and documentation showing the actual value received (flight receipts, photos of the accommodation, the $250 gift card). If they don't provide a 1099 soon, you'll need to report the fair market value of what you actually received as "Other Income" on Line 8i of Schedule 1. The key point is that you only owe taxes on what you actually received, not on the inflated promotional value they advertised. So calculate the real value: actual flight cost (you have receipts), reasonable rental value for that specific property during your stay dates, plus the $250 gift card. I'd send one final certified letter to the company requesting the 1099, then proceed with your own valuation if they don't respond. The IRS understands that some companies are unresponsive about prize documentation, so as long as you make a good faith effort to determine fair market value and keep records, you should be fine.

I went through something similar with a travel giveaway from TikTok last year! The company kept giving me the runaround on the 1099 too. What really helped me was creating a detailed timeline of all my communications with them - dates, what they promised vs. what was delivered, screenshots of the original giveaway post, etc. Since they're already past the January 31st deadline for sending the 1099, I'd recommend sending them one final demand via certified mail with a clear deadline (maybe 10 business days). In that letter, specifically mention that you need the 1099-MISC for tax filing purposes and that they're already late on their legal obligation. Meanwhile, start gathering your own documentation for fair market value calculation. You mentioned having flight receipts which is perfect. For the accommodation, even though it was a personal home, research what similar properties would rent for in that area during your stay dates. The $250 gift card is straightforward to value. If they still don't respond, you can file your taxes reporting the actual value received as "Other Income" and keep all your documentation. The IRS is pretty understanding when taxpayers make good faith efforts to comply despite uncooperative prize sponsors. Just make sure your valuation is reasonable and well-documented!

What a frustrating situation! You're absolutely right to be concerned about this. Since you filled out a W-9 and the prize value likely exceeds $600, they should have sent you a 1099-MISC by January 31st - they're already well past that deadline. Here's my take: Document everything you actually received versus what was promised. You have the flight receipts (great!), the $250 gift card, and you stayed at their personal vacation home. The key is that you only owe taxes on the fair market value of what you actually received, not the inflated promotional value. For your tax filing, I'd calculate it like this: - Flight costs (you have receipts) - Fair market value of the vacation home stay (research comparable Airbnb/VRBO properties in that area for your dates) - $250 gift card value Send them one final certified letter demanding the 1099 with a specific deadline (maybe 10 business days). If they don't respond, proceed with reporting the actual fair market value as "Other Income" on your tax return. Keep all your documentation showing how you calculated the value. The IRS understands when prize sponsors are uncooperative, so as long as you make a good faith effort to determine reasonable fair market value and keep detailed records, you should be fine. Don't let their poor communication put you at risk for penalties!