Winning $1000

[MOMof3]

Hypothetically, if I were to win a $1000 cash prize that I have to fill out an irs claim form for, do I need to notify the trustee?

[MomIcantFindmy]

If you do not let the trustee know they will find out when you file your taxes and send them a copy. Then they may decide they want it. It depends on the trustee.

[CATCHMEIFYOUCAN]

Are you gambler?

Catchmeifyoucan

[Flamingo]

Hypothetically

Hypothetically, if I were to win a $1000 cash prize that I have to fill out an irs claim form for, do I need to notify the trustee?

Yes.

[wooisme]

yes you do however if you win a million dollars or more.........you don't have to notify him or her about that because you would be withdrawing your bankruptcy petition! OR you would pay off your bankruptcy IF it's been three years into the plan.........i myself would withdraw it and then pay the creditors myself! I most certainly would not give $1 million dollars to any trustee!

[MOMof3]

Ok, realistically now...how much would the trustee care? I'd be looking at about $700 after taxes? Would it be better to just have someone else claim the prize? I am NOT a gambler, but purchased a ticket under EXTREME peer pressure--lol, so this "hypothetical" prize would be an unexpected one.

[CATCHMEIFYOUCAN]

If you are in a Ch13, the trustee will definitely see it when you file your taxes and have to show them to him/her. They may have issues with that. If you can get someone to claim it for you - I know I would, the only issue THEY might have is having to pay taxes on it instead of you! And I'm sure they would want a cut of the prize money!

Best of Luck, Catchmeifyoucan

[CindyLou]

You only have to tell your trustee if he has requested to know about a change in your income. did he? Usually they will say a change of X%....... or if they have asked to be notified of bonuses, etc.....

[bowlingmt]

Our trustee told us (and it was in our letter from him) that we had to report any "windfall" over $2500, so we would not have to report that. Also, we are not required to send him copies of our returns. I guess it would be nice if every trustee was consistent, but they sure aren't.

[MOMof3]

We avoided all together Thank goodness for younger siblings that care! I prefer to stay under the radar at all costs! Federal taxes were already taken from the payout so my brother should end up w/out any liability as well.