- quote -

No, it's not a viable argument. The lawyer is wrong (and
advised you to do something illegal!). It's a prize or
award, not a gift. If the award, together with any other
income your daughter has, is enough that she is required to
file a tax return, then she has to report the award as
"other income" on Line 21 of Form 1040.

- quote -

It has nothing to do with YOUR taxes. It's your daughter's
income, not yours. If, as I said, she has enough income that
she is required to file, then she has to file her own tax
return and report the award on it.

Bob Sandler

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Larry" <Larry[at]larry.com> wrote:

- quote -

I think you should start taking tax advice from tax
professionals and stop taking the self serving advice of a
specific attorney. Prizes are income.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Larry wrote:

- quote -

The contest award(s) is taxable income to your daughter
(Line 21 of Form 1040 of her tax return).

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Larry wrote:

- quote -

Not to fear, you won't be cheating on your taxes atall.
After all, it's your daughter's income, and subject to
reporting on her return. And depending on how much "decent"
is, she may, or may not, have any tax liability.

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Larry" <Larry[at]larry.com> wrote:

- quote -

This is major proof that all lawyers don't know the tax law!

Wayne Brasch

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Larry" <Larry[at]larry.com> wrote:

- quote -

Of course it's income. See IRS Publication 525 and don't go
to the awards chairman for tax advice.

- quote -

Remember that this is your daughter's income, not yours. It
goes on her return.

--
Phil Marti
Clarksburg, MD

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Larry" <Larry[at]larry.com> wrote:

- quote -

My favorite answer is "It Depends". How much cash constitutes
a pretty decent cash award? How old is your daughter? Did
she have any other income than an allowance?

Dick

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

My daughtor just won an essay contest and got a pretty
decent cash award. The awards chairman, a lawyer, said we
should just consider it a gift and forget about it for tax
purposes.

Is that a viable argument? I have never cheated on my taxes
and don't plan to start.

(She also got second in another major contest; I didn't even
know she could write!)

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->