In some cases, it might be better to decline contest winnings [free WSJ article] than to accept the prize. The income tax due on winnings might be more than what it would cost to buy the prize outside of the contest. In the article, a man declines free American Airlines flights.

Updated February 6, 2012 and originally published July 5, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.

 Email  Print

Points: ♦126,549
Rank: Platinum

About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by Luke Landes.

Read related articles from Consumerism Commentary

• 2011 Federal Income Tax Brackets and Marginal Rate...
• How to Pay a Tax Bill You Can't Afford
• The Buffett Rule: Tax for Millionaires
• Some Taxpayers Can't File Income Taxes Until March