Won Free Cruise at Bingo - Not Free at all!

[Dorene1]

I'm not sure why it's so hard to understand, Free Cruise, when you book a cruise there is one price, the tax and port charges are additional. I think people like to complain about things and thats how they are. Don't play bingo on your next cruise and you wont need to feel upset about a free cruise.

 

 

Dorene

[Pete Jackson]

I've always wondered what people should do when the 1099 doesn't reflect the actual market value of what was received. I guess if you have good proof of the actual value of what you won, then you need to get the 1099 reissued. The problem is that HAL, or whoever gave the prize, will be listing the 1099 as a business expense.

 

I suppose that you could just list the actual value, along with your proof, as your income on the tax return, and have the IRS adjust HAL's return appropriately. And they lived happily ever after!!:D

[ljnunley]

I played bingo on Zuiderdam in January and didn't win...wish I had the opportunity to be as disappointed as the OP. I was with my parents who won the cruise playing bingo last summer...and they were only on that cruise because of the prize. We got to spend a week together and had a great time, wouldn't have happened without HAL offering the prize. No way HAL makes the "wall of shame".

[ger_77]

Although there are few, one of the perks of living in the "frozen tundra" (Canada) is that we are not taxed on lottery winnings. So, when I win my free cruise (yes, I'm counting on it), I'll take it, pay the required amount and enjoy my vacation on another Dam ship. Likewise, when we win a million dollars in a Powerball type lottery, we'll get the entire amount and no tax receipt will follow in the mail after we've cashed the cheque.

 

If you don't want to take the trip, let me know and I'm sure I can handle it for you.

 

Smooth Sailing! :) :) :)

[mindydaile]

For those of you who've won in the past....when did you receive the 1099 - in the year you won or the year you actually took the cruise? I won in 2007 and did not receive a tax document. I cruised this year (2008) so should I be looking for a form next January?

[RuthC]

As someone who is very familiar with living in the "bowels of the ship", you may add me to the list of those who would be happy to take that "free" cruise off your hands.

I'll even be happy to have the 1099 transferred to my tax liability AND reimburse you the cost of the BINGO card. ;)

Do we have a bidding war starting? :D

[mindydaile]

 

Do we have a bidding war starting? :D

 

I'll throw in a pre-paid envelope in which to send me the voucher :D

[Richjoxyz]

The OP ended up paying $1095 for the "free cruise" in an oceanview cabin, and that does not yet include the taxes due on the IRS 1099 Form!

 

My last cruise on the Zuiderdam cost $1,025 for an oceanview cabin, with no 1099 coming in the mail.

 

Sounds like regular price (during low season) is better than the free cruise!

 

I don't think this is wall of shame, but by the time the fees and taxes are paid, along with the future income taxes owed, it looks not much was "free" at all.

[mindydaile]

The OP ended up paying $1095 for the "free cruise" ...

 

But the key point is that the OP CHOSE to upgrade, etc. which increased his price. HAL did not "force" him to do this in order to get more money out of him. Had he taken the inside guarantee the cost would have been much cheaper, and he still may have ended up in an outside cabin anyway.

[Richjoxyz]

I don't like the idea that the cruise line will send a 1099 for full rack rate, my guess is something like $1,800 for a cabin that you can purchase for around $1,000. If you pay state and federal tax on the $1,800 dollars at...say35%, that equals $630, plus $400 to $500 in port fees and "admin costs", and voila, you might as well just buy a cruise from your TA when they are on sale. I would spend my $20 dollars on something I enjoy more than bingo, cause ya ain't winnin nothin...even if ya win!

[jhannah]

Looks like it might be good to keep one of the brochures or a printout of the HAL website for your cruise to document what the value of your winning was.

 

She could give away the voucher ... but will still be dinged with the 1099.

[cusyl]

Send the travel docs to me; I'll reimburse you. ;)

 

I'll take it also, is it transferable? I have won 2 cruises...one in a raffle and one in a sweepstakes. I expected to pay port taxes and fees, also tips for the crew. What is free is the cabin, food etc.

Count your blessings! :cool:

[Richjoxyz]

Looks like it might be good to keep one of the brochures or a printout of the HAL website for your cruise to document what the value of your winning was.

 

She could give away the voucher ... but will still be dinged with the 1099.

 

Good idea. I just checked the HAL website for the Eurodam and found prices ranging all the way up to $1,025 per person for an inside room, depending on the week. The least expensive week is around $600ish (or high $500s) on the TA website. The 1099 could be for as much as $2,050, even if you sail during a week that would have only cost $1,200. Due to the fact the cabin prices are ALWAYS changing, how do you think HAL will select the value of the 1099? I suspect it will be to their favor. That is what happened with my Carnival "free cruise" voucher.

[caviargal]

Do people in suites pay more for bingo cards than people in inside cabins?

 

;):D

[mamaofami]

I won a free cruise once, and it isn't transferable. I think I still came out ahead. I upgraded to a veranda during one of the three category upgrade sales. There was no fiel surcharge then, but I did pay port charges, etc. Still, not a bad deal and I could have kept the cabin they were going to give me.

[Copper10-8]

To the OP: I'll give you a pet rock, a Mr. Microphone (unused, still in the box) and a 8x10 framed and autographed pic of the unknown comic for them tickets and I'll pay the taxes on top of that! Come on now, how can you turn down such a deal?

[dmlee1990]

I, too, won a "free" cruise to the Caribbean, but through a HAL raffle. Instead of choosing the Caribbean, we chose to go to Mexico. We expected to pay the difference, since the Caribbean is a less expensive cruise. We also wanted to take our children with us, since they have never been to Mexico, therefore having to pay their fare too. Given all of this, we were given a $700 credit towards the Mexico cruise. Although it wasn't a free cruise, we were still very happy that my name was drawn as the winner! I just saved $700 (after discounts given for being a previous Mariner and other special pricing) on our Mexican Riviera cruise! We would have taken a Mexican cruise either way, so getting an additional $700 discount was great! That's an additional $700 I can spend on excursions, souvenirs, drinks, etc.

[hammybee]

To the OP: I'll give you a pet rock, a Mr. Microphone (unused, still in the box) and a 8x10 framed and autographed pic of the unknown comic for them tickets and I'll pay the taxes on top of that! Come on now, how can you turn down such a deal?

 

Just noticed your avatar....:eek:

[hammybee]

I'll throw in a pre-paid envelope in which to send me the voucher :D

 

I'll throw in a lottery ticket.

[Sailor Gal]

I understand having to pay port charges and taxes but the stateroom category should have been better.

[Pete Jackson]

Do people in suites pay more for bingo cards than people in inside cabins?

 

They once did a study on that (I M Fulovit, AJNS* vol 6, p 666, 2005) but couldn't collect any data. It turns out that people in suites don't play bingo; that's how they have enough money to sail in suites!:D

 

*American Journal of Nonsensical Studies

[innlady1]

As someone who is very familiar with living in the "bowels of the ship", you may add me to the list of those who would be happy to take that "free" cruise off your hands.

I'll even be happy to have the 1099 transferred to my tax liability AND reimburse you the cost of the BINGO card. ;)

 

Do we have a bidding war starting? :D

 

Yep...I'm right behind you, Ruth! ;)

[topspot]

To the OP, you did expect to pay for your transportation to and from the DAM ship, right?

 

Or did you expect that would be "free" too.

[rochelle_s]

I am just curious....if as an American you win your prize ( cruise, money, whatever) while in international waters do you still have to pay tax on your winnings? Does the US government have jurisdiction over you and your supposed 'income' while in international waters....or water governed by another country?

Years ago on my first cruise I recall the crew telling me that they were paid while at sea and therefore did not have to pay taxes on the money they earned. Perhaps this has changed but that was what I was told back then.

 

Rochelle

[Texas Tillie]

I am just curious....if as an American you win your prize ( cruise, money, whatever) while in international waters do you still have to pay tax on your winnings? Does the US government have jurisdiction over you and your supposed 'income' while in international waters....or water governed by another country?

Years ago on my first cruise I recall the crew telling me that they were paid while at sea and therefore did not have to pay taxes on the money they earned. Perhaps this has changed but that was what I was told back then.

 

Rochelle

 

I do know that if a person from Texas, where there's no state income tax, wins big on a quiz show that's taped in California, they have to pay California state income tax on those winnings!