Curious from the experience of others here. I participated in a roadtest where it looks like the product is now going to cost me around $2,000.00 from "self-employed" taxes. Needless to say this is unplanned. Do other RoadTest participants in the US have suggestions on this? Is this a common expected event? My wife is pretty much saying my budget for anything is now blown.
Canadians have a much better time with prizes than US citizens.
The US IRS requires all winnings to be considered as income and if the value is over $600 the sponsor must send a Form 1099-Misc.
In Canada, the CRA does not require contest prize winners to pay fees or taxes of any kind on prize winnings, 
except prizes from your employer may be considered income benefits and you may pay travel taxes on trips.
I believe there is also a reciprocal tax agreement between the USA and Canada where citizens are taxed according to their place of residence - so if a Canadian wins a US contest, they pay no tax, but if a US citizen wins a Canadian contest, they probably pay tax on it. 
US sponsors routinely withhold taxes on winnings, but I'm pretty sure Canadians can claw that back, if they are willing to go through a lot of aggravation and red tape.
I knew there was a reason I chose to live in Canada.
Canadians have a much better time with prizes than US citizens.
The US IRS requires all winnings to be considered as income and if the value is over $600 the sponsor must send a Form 1099-Misc.
In Canada, the CRA does not require contest prize winners to pay fees or taxes of any kind on prize winnings, except prizes from your employer may be considered income benefits and you may pay travel taxes on trips.
I believe there is also a reciprocal tax agreement between the USA and Canada where citizens are taxed according to their place of residence - so if a Canadian wins a US contest, they pay no tax, but if a US citizen wins a Canadian contest, they probably pay tax on it.
US sponsors routinely withhold taxes on winnings, but I'm pretty sure Canadians can claw that back, if they are willing to go through a lot of aggravation and red tape.
I knew there was a reason I chose to live in Canada.
