"Free" cruise but i pay the port fees? Worth going?

[xxoocruiser]

Donray,

 

please leave my thread.

 

thank you

 

Though you may like what Donray has stated regarding taxes on rewards ,asking him/her to leave this thread doesn't negate the issue of taxes. The IRS reportable mandatory threshold for rewards is $600.00. Total Rewards is required by USA Federal Tax Law/Codes to issue a 1099 Form for any award paid out that is $600.00 or more. The 1099 Form gets sent to both the IRS and the individual receiving the reward.

Edited June 16, 2014 by xxoocruiser

[chasinraynbowz]

I got a free cruise too and am going on the NCL Gem in October. Can't wait! I priced the inside cabin and I am paying about 35% of what I would have paid if I were paying full price. I am going to try to upgrade to at least an OV, but as of right now they are completely sold out.

 

I am lucky. I have enough points on my AmEx card to pay for my flight to New York and enough Hilton Honors points to pay for my hotel the night before our cruise. I am really getting off cheap this time!!

[Donray]

Donray,

 

please leave my thread.

 

thank you

 

 

I guess you are OK with ignorance? I was not the first to bring up taxes. Why didn't you ask that person to leave?

 

I guess your OK with the spread of misinformation on this site.

 

I never responded to your posts so why get snotty with me and not the original person that brought up taxes?

[fstuff1]

I guess you are OK with ignorance? I was not the first to bring up taxes. Why didn't you ask that person to leave?

 

I guess your OK with the spread of misinformation on this site.

 

I never responded to your posts so why get snotty with me and not the original person that brought up taxes?

 

soory.. this was page 2. I assumed you were the same person spewing tax guilt that was on page one.

 

if not, then I apologize.

[Agr8RN]

I've gotten 'free' cruises before where I've paid small amounts or just taxes and fees. Never in a million years would I be declaring the discounted portion of the cruise on my taxes as income. lol, Smh.

I paid a price for the cruise, if they discounted it - it's not income to me - it's a tax write off for them since they discount it for me.

See some crazy stuff here lol.

 

When I mentioned the taxes /fees on the 1st page - I was referring to port charges, etc.

sorry of others took it in another direction.

 

 

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[Hawaiifrank]

I also think you may owe some income tax on the trip. Several years ago I received a 1099 form, I believe it was a 1099-misc after my wife won a 3-night hotel stay with airfare for 2 on The Big Island, Hawaii, when we lived on Oahu. I was shocked, to say the least, when that 1099 arrived a few months after the trip.

 

The 1099 valued the the trip at full retail suggested MSRP. The rack rate for the hotel was $350/night and the full fare airfare for Hawaiian Airlines was listed as about $250. The stated total value was $1500 or so. My tax hit was going to be about $350 since I was in the 25% bracket. I read some tax code and discovered that I was allowed to adjust the value to a real-world price, so I knocked off about 1/2 the cost i.e. what I would have paid to book the same trip using the actual going rate for advance purchase, mid-week, local resident discount, etc.

 

I know your "reward cruise" isn't exactly the same as a contest prize, but you might want to ask a tax adviser or the people offering the rewards.

 

I once received a 1099 from a credit card company after they settled an outstanding balance for less than face value. Who'd of thought? To the bank it was a write-off but the IRS still wants it's cut of that money so THEY look at it as if the bank gave me the cash, then took it back as payment for the debt. It just doesn't seem right.

 

So, I would at least ask if the reward is a reportable, taxable prize or not before accepting it if that would make a difference in your decision.

 

One other thought occurs to me. Is the reward for solo travel or double occupancy? Usually cruise lines expect 2 in a room. A single-supplement is charged (typically 100%) for solo travelers who are booking through normal channels.

[Hawaiifrank]

I've gotten 'free' cruises before where I've paid small amounts or just taxes and fees. Never in a million years would I be declaring the discounted portion of the cruise on my taxes as income.

 

If you didn't get a 1099, no problem. If you do ever get a 1099, the IRS got a copy too and you ignore it at your peril. In my other post, above, I gave 2 examples of when I had to pay tax on something unexpected. I'm sure there are many, many more taxable events that can pop up that most people are unaware of.

[NIATPAC29]

Please make sure there are no strings attached. You don't have to listen to a sails pitch etc.. And just a heads up, if you choose to accept this, you will have to pay taxes on it as well. :)

 

 

Does anyone see where the OP asked for Tax advice ? I do not. All of you self proclaimed Tax experts need to hang out on IRS . COM !!

 

 

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[ITD]

Does anyone see where the OP asked for Tax advice ? I do not. All of you self proclaimed Tax experts need to hang out on IRS . COM !!

 

 

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I think the point of the "tax advice" was the cost of any potential taxes could factor into the value of the free cruise. Depending, it could make it less of a good deal.

[TC1957]

Donray,

 

please leave my thread.

 

thank you

 

Like it or not...Donray is correct. If the total value you are receiving as the reward is in excess of $600 you WILL receive a 1099 from the company comping the trip...and a copy of the 1099 WILL be sent to the IRS. If you DO NOT declare that amount as income on your tax return it WILL be caught by the IRS. As a result you WILL pay the taxes on that ordinary income PLUS interest PLUS the penalty for failure to declare.

 

Might want to factor that in when calculating the cost of the trip.

Edited June 25, 2014 by TC1957

[fstuff1]

Like it or not...Donray is correct. If the total value you are receiving as the reward is in excess of $600 you WILL receive a 1099 from the company comping the trip...and a copy of the 1099 WILL be sent to the IRS. If you DO NOT declare that amount as income on your tax return it WILL be caught by the IRS. As a result you WILL pay the taxes on that ordinary income PLUS interest PLUS the penalty for failure to declare.

 

Might want to factor that in when calculating the cost of the trip.

 

nope. talked to my casino host. this trip is considered a gift, thus no 1099 no matter the amount. :D

(got that in writing.)

Edited June 26, 2014 by fstuff1

[NIATPAC29]

nope. talked to my casino host. this trip is considered a gift, thus no 1099 no matter the amount. :D

 

(got that in writing.)

 

 

Welcome to CC lots of so called experts on here ! Will the real CPA tax pro raise your hand. Go cruise have fun win a lot of $$$$

 

 

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[czlahaina]

nope. talked to my casino host. this trip is considered a gift, thus no 1099 no matter the amount. :D

(got that in writing.)

 

Same with me according to my casino host!

[Ctrinh225]

Hi fstuff1... I love playing at the casinos....and every year my host tells me about cruising and I never really care for it. We always fly to Las Vegas instead and stay in suites there. But last year he convinced me so I took my sister along going on the NCL Epic. Being 7* at the time gets me a free balcony but I have to pay any upgrades if I wanted like a spa or suite (Haven). I also have to pay taxes, port, and gratuities. Don't get the insurance in IMO. I decided to upgrade to a spa mini suite which was $350 more. Then before I went I read so many negatives about the boat and felt like I'm gonna regret this. Let mr tell ya! WE had the best time in my life! Go for it. U will never get this type of discount unless u been cruising a long time and build up points just like ur tier reward card. That cruise certificate is probably worth --around $1000 bucks. NCL Breakaway is a great ship. Been on her in October 2013 and I'm now booked on the Getaway for October 2014. I blame all on my host now for this addiction. Lol. I know those have a time limit when u can travel. U can put down a deposit and then pay in a few months if it helps. This was my story....I hope it helps.

 

 

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[Rogueperson]

I have noticed that port charges and taxes out if NYC are significantly higher than a similar cruise out of Florida. I recently booked a 2 night cruise out of NYC to nowhere. Port charges and fees were 92.00 per person for no ports other than NYC.

 

My port charges out of Florida for the Caribbean was slightly higher than that.

 

 

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[tpadul]

Like it or not...Donray is correct. If the total value you are receiving as the reward is in excess of $600 you WILL receive a 1099 from the company comping the trip...and a copy of the 1099 WILL be sent to the IRS. If you DO NOT declare that amount as income on your tax return it WILL be caught by the IRS. As a result you WILL pay the taxes on that ordinary income PLUS interest PLUS the penalty for failure to declare.

 

Might want to factor that in when calculating the cost of the trip.

 

How can a 1099 be issued to anyone for a prize or reward like this if the company that gave away this prize doesn't have your social security number? Nothing can be reported to the IRS via a 1099 if you don't know the person's social security number?? I know I don't work for the IRS but I have seen my share of tax returns and 1099 forms over the years. I am an Immigration Officer and in the course of my job I see a lot of people's tax returns and I have never seen a 1099 issued without a social security number. The IRS records all of our taxes due and such through the social security numbers and EIN numbers so unless the company that gave away the prize had your ss# I don't see how they can issue a 1099 to the IRS for the value of the prize someone won unless they had your number.

 

Just wondering how that would happen or who would voluntarily give up their social security number if they won such a prize??

 

This question interests me too as I happened to win $1,000 toward a cruise from a photo contest from a travel agency. I paid the taxes and port charges and they paid the $1,000 directly to Royal Caribbean. At no time during the booking process with the travel agency did I ever give them my social security number nor did they ever ask for it. This was back in February of this year and we are taking our cruise in November. Also won a raffle at a wedding expo here in Chicago in March and won two rountrip airline tickets on United Airlines and I have already booked those tickets in conjunction with the cruise, I paid absolutely nothing for the airline tickets not even taxes. I was given special codes to plug into the online booking and at no point was I ever asked for my social security number for the free airline tickets I won either. How would a 1099 for the value of that even be issued to me without knowing that information?

 

I guess that would really suck big time if at the end of this year I get a 1099 from the travel agency for the $1,000 they paid toward the cruise and if United Airlines sent me a 1099 for the value of the two roundtrip airline tickets. I just don't know how they can issue it and report it to the IRS without having the ss#.

[jammen]

I would not go.

[NIATPAC29]

I would not go.

 

 

Some one is Jealous !!

 

 

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[Ctrinh225]

Anytime I get any discount on a cruise I'm gonna take it. And especially on the new ships Breakaway or Getaway. I wish it was transferable!! Lol

 

 

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[Sestar]

I too received a free cruise offer. This is second time i have received it. First time was 3 years ago. We got 7 days to Mexican Riviera on Balcony for FREE. We just have to pay a small port fee and taxes. I DID NOT get a 1099 from the casino. Maybe it has something to do with the Casino being in Indian reservation and its owned by Indians ?? I don't know really.

 

Earlier this year, the offer i got was less attractive. It's inside room this time. We picked the cruise we wanted and called NCL casino rep to book it. I was able to upgrade our room to Balcony with a small fee. At the end, we paid a little over $1900 for two. We got mid-ship (BA category) Balcony room. The same exact room is sold for over $3800. A savings of almost $2000 for me. :eek:

[JenaMH]

The first thing that popped into my head was about the single occupancy thing too. You'll want to make sure that you aren't penalized for that. Sometimes it is almost the same price to bring along a friend as it would be to pay the single occupancy "penalty". Of course.. they'd still have to come out of pocket for drinks, excursions, gratuities, etc.

[fstuff1]

The first thing that popped into my head was about the single occupancy thing too. You'll want to make sure that you aren't penalized for that. Sometimes it is almost the same price to bring along a friend as it would be to pay the single occupancy "penalty". Of course.. they'd still have to come out of pocket for drinks, excursions, gratuities, etc.

 

booked 7day from nyc to Canada on NCL Gem.

 

no single supplement.

175 port fees

200 govt taxes

 

interesting enough, I did a mock booking at a travel site.

as a single: 350 port fees, 200 govt taxes, + price of room

2 people: $175 port fees+ 200 govt taxes each + price of room

 

so booking thru my casino saved me $175 single supplement (in addition to the free room)

Edited July 8, 2014 by fstuff1