Won Free Cruise at Bingo - Not Free at all!

[Susie51]

I hope you can enjoy your cruise. Thinking of it has a discount, should help put the "free" cruise into a different light. Could you prove to IRS that you do not pay the rack rate for cruises and therefore should not be taxed on the rack rate.

 

Also, find out in writing how many rack rate cabins HAL typically sells on the particular itinerary you are going to sail. Or perhaps an average price for your room category.

[Boytjie]

I haven't read the full thread, but if you move to Canada, you won't have to pay tax on your winnings!

 

I won the Black Jack Tournament on our last cruise ($500) and didn't have to pay a penny of taxes.

 

IIRC only winnings of over $1,200 are reported.

[sapper1]

I agree OP, at the "free cruise" bingo on my last cruise there were AT LEAST 300 people playing.

300 X $20.00 =$6000.00 ...for a 7 night carrribean cruise, come on everybody, it would not hurt HAL or any other cruise line doing this to give a decent room and not stick the winner with extra fees!

To our northern friends, I won a little over $2000.00 on a foreign flagged cruise ship in international waters and had to fill out an IRS form to get paid. That cost me on federal and state taxes:mad: .

Next time I will tell them I'm Canadian:D

Just "telling" won't cut it. You have to show your Canadian passport to avoid getting the tax bite.

[airlink diva]

First of all let me say that there are some things in your thread that I agree with and others that I don't.

I agree that HAL should at least offer an outside cabin. I know that when I was on the Miracle in 2006, the free cruise bingo offered a balcony cabin for a 3,4,5, or 7 day cruise. As for what type of cabin the winner is in, that's a little over the top.

You are right that they need to mention that the winner will have to pay the port taxes and certain misc charges in winning. On my cruises, this was mentioned in the majority of the cases.

As for the taxes, if you win anything over $600 in value, you are to pay the taxes. The tax issue is not just a HAL thing, but at a casino,winning on an another cruiseline, game show,drawing,etc. One of my friends won a truck on the Price Is Right a few years ago. Prior to getting the truck, he had to pay taxes and a few other fees. However Matt wasn't upset. He got a nice truck with no monthly payments for a very low cost.

Check with the TA to find a sailing with the best rates with the tax and port fees. If you want to upgrade to a higher cabin, just suck it up and do. But I can tell you that the HAL inside cabins are nice,esp for sleeping!!

On my sailing on the Maasdam last April,the woman that won the cruise was on her cruise that she won playing bingo. Since it was a 10 day cruise, I bet that even with the taxes and paying a little bit more, she still got a better value than 99% on the ship.

Happy sailing!!

Second time around and my 40th birthday cruise on the

MAASDAM

10/24/08-11/07/08

[babyher]

There are absolutely no free lunches in this world and despite everything you got off pretty good.

 

You think you have it bad,

 

A family in the next town over from me was picked to have a new house built for them on that "Extreme Makeover" show.

 

Iiit was big news here all last summer while they were building it and the episode actually aired last October.

 

This woman who had abunch of her own kids and several foster kids lived in thsi run down house in a ery run down inner city neighborhood. between a fire and flood damage that the house had suffered the place was a wreck and just varely livable for the family. This woman has spent years taking in foster children and working with the underprivalged and I guess some relatie wrote to teh producers about her plight and lo and behold she was picked .

 

Well just like on the show , all the workers and volunteers descended on the house , tore it down and built them this absolutely gorgeous gorgeous home. Filled it with every state of the art appliance you can think of, filled it with beautiful furmiture, landscaped the yard with a reflecting pool and made it look like a botanical garden. You can't believe the job they did.

 

Then like you see on T.V. the family comes home, they yell "MOVE THAT BUS" , the family goes nuts, they cry, they thank God, the workers, the network. What a fairy tale ending right?????? Yea sure.

 

The city has assesed this house at $695,000. I think I heard taxes are something like 6 or 8 thousand a year

 

Mind you this is a single mother who i think they said was a church secretary or something with about 7 kids (her own and foster)

 

True the house and everything in it are a gift from the show , but she still has to pay taxes and up keep and insurance and all those fun things we homeowners deal with. This woman could barely keep her head above water with the hovel she was living in. In addition to that some of the aid agencies that were giving her money for her brood are saying they are either stopping or cutting her payments because "Hey she has a $695,000 home how needy can she be?"

 

She is gonna have a tough time selling because, like i said it is in the middle of an extremely depressed urban area. It is literally amongst burnt out store fronts, and crack houses and has been the scene of countless drive by shootings and the like. So no one in their right mind who could afford anything close to $695,000 is going to buy it.

 

You hae to be careful, sometimes a gift horse can bite you in the butt.

[newmexicoNita]

On my Jan 16th cruise to the Caribbean aboard the Noordam, I won a "Free 7 day Caribbean Cruise for 2" playing Bingo! :D

 

After all the fanfare died down, I read the fine print on the certificate they awarded me. It was clear that I would get a minimum category inside stateroom, although this was never mentioned when the Cruise Director promoted (ad nauseum) the prize for playing a special $20 "FREE CRUISE FOR 2" bingo game. I was not happy about this because I felt that since my current cabin was a Suite, the FREE CRUISE FOR 2 I won should be comparable to the room I was paying for. However, since it's not my policy to look a gift horse in the mouth, I tried to book passage on the Holland America's Eurodam for next year and was willing to consider upgrading my room.:o So, I called Holland America.

 

Much to my surprise, I was told that not only did I have to pay the taxes for the cruise but I also had to pay for additional non-discountable fees. How much do you say? The cost of these fees for 2 people amounted to $495.40. :eek:

 

If I wanted to upgrade the cabin to a large inside on the lowest deck it would cost an additonal $370. If I wanted to upgrade to an ocean view it would cost me an additional $600. God only knows what it would cost to upgrade to the accomodations I was in when I won the so called "Free Cruise". For me, "FREE CRUISE" would actually wind up costing me $1095 since Oceanview was as low as I was willing to go due to a medical condition.

1. My complaint is, if the Staff of Holland America claims that for my $20 bingo card I will receive a "FREE CRUISE" -it should actually be free. I should not have to pay $495 in other fees and taxes. What are these other fess anyway? Holland America would only state they were admistrative.
   
2. The "FREE CRUISE" should not be in the bowels of the ship - that's a really tacky thing to do and does not speak well for Holland America. Actually, they should be ashamed of treating their guests so shabbily!

In conclusion, wouldn't Holland America have rathered I wrote this thread praising them? Wouldn't Holland America have appreciated the fact that upon this praise this would encourage more people to play bingo for a truly free cruise? Bottom line, if you play bingo for a free cruise it's going to cost you a minimum of $495.40 I think this is bad business sense. This is deceptive advertising at it's worst. Why isn't Holland America honest and upfront? Perhaps on Holland America there is no such thing as a free lunch!:mad:

 

This wins Holland America a plaque on the Wall of Shame.

 

Jane Sims

not reading the rest of the responses I will give you my feeling and I am betting most everyone else feels exactly the same. Of course it would be an inside cabin, they could care less where your cabin is at the time you won the prize. My DH bought a car one weekend several years ago, the company was offering a free 4 day cruise to anyone who purchased a car that weekend. No one said, well this is a Ford dealership so if you buy a Forgus we will give you an inside cabin, but if you decide on a Mercury Grand Prix you will get a balcony. And, the non commissionable fees. which are what you are talking about are a requirement by law. The cruise line has to charge the passenger these. No, you couldn't expect HAL to pay them for you.

 

BTW, we added a third person when we got our free cruise, instead of going with hubby I took my two daughters, we did upgrade to an outside and we did pay the extra charges. It was still a heck of a good deal and we had a blast.

 

If you choose not to take your free cruise, it is you that will suffer, not HAL>

 

Nita

[newmexicoNita]

Truly there is no such thing as a free lunch!

 

Technically, your CRUISE was free. Not in your choice of cabin, though. The fees are above the cost of the cabin. It's this way on most all booking sites. You see the cost of the accommodations, then later on you're given the port fees, taxes, surcharges, etc.

 

I do agree, though. If they're giving away a cruise it should be at least an oceanview ... and preferably a verandah.

 

And John is right. You'll get a 1099 at the end of the year so you can pay income tax on the value of the cruise. (This is where the low category of cabin helps you ... fewer dollars, less tax due.)

 

you can't be serious.....

[newmexicoNita]

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.

Rickjoy, you are talking about 2 totally different ships with different pricing and we don't know the time of the year either. No way can you compare something that you don't really know much about. I can assure you, 2 traveling on most HAL ships with an outside cabin for $1000 is a steal........

[newmexicoNita]

Thanks everyone for the lively debate! To answer a few questions...

• To the suite snobs...My medical condition is that I can't walk, so I need a scooter. Guess that's why it takes 2 years to save up for a cabin large enough to contain the scooter when there are only a few handicapped cabins onboard.
  
• Re the taxes...WOW didn't realize I would have to pay income tax on it. Yet, this would really be income and so I wouldn't mind giving Uncle Sam his due. After all, the government needs my money so that the fat cats can go on fact finding missions with their entourage...but that is a seperate issue.
  
• Of the $485 - only $156 is for is for port charges. $329 is for administrative fees which I think excessive. This is what really bothered me.
  
• To those who want me to transfer the free voucher to them...Sorry, the voucher states it's non-transferable:(
  
• Bottom line: I truly believe it is only fair to announce up front what prize you are actually playing for and the cruise director did not do this.

Jane:D

sorry port charges and government taxes would be much more then $156 for two; it would be more than that for one. most intineraries right now have port charges ranging around $140 for a 7 day, 3 or 4 port itinerary. Government fees will run about $40 to $70.00

 

Nita

[HeatherInFlorida]

After all, the government needs my money so that the fat cats can go on fact finding missions with their entourage...but that is a seperate issue.

 

Jane, you almost had me through this entire thread until I got to this. Just not necessary.

 

Fact is anyone is lucky to win a free cruise no matter what category and to look at it as anything but a gift is just greedy. As many mentioned, lots of us would be thrilled to get such a huge "discount" off a cruise. Should they call it "free"? Probably not, but you're under no obligation to accept.:)

 

...Babyher, that's such a sad story. I remember game show winners many years ago having to give back their "winnings" because they couldn't afford the taxes. And I believe it was Oprah who gave away all those cars and the people actually couldn't afford the taxes so Ellen decided to give away cars and pay the taxes, too:) .

 

There really is not a whole lot in this world that's truly without a price.

[Richjoxyz]

A few people are missing a critical point. HAL decides the dollar amount on the 1099. If HAL says you received $3,500 dollars, you owe tax on $3,500 dollars. That is a tax liability of about $1,000 just for the income tax! Then you add port fees, taxes, fuel, and "HAL admin costs", of another $500 or $600 dollars. The free cruise could cost $1,500 dollars for an inside room!

 

I have been on two HAL Vista ship cruises in the last six months and have another in a few weeks. All of them have been Outside cabins, and all less than $1,100 dollars total, for two people.

 

My only complaint about a "free" cruise is that the cruise lines provide a very overpriced 1099. They write off $3,500 dollars and obligate me to pay tax for a cruise price that is two to three times too high.

 

It is possible that the free cruise will actually cost more than just buying the same cruise. However, you are relieving HAL of $3,500 dollars of tax liability, and for that, I am sure they are happy!

 

Now, on the other hand, if you find a booking that ACTUALLY would cost $3,500 for an inside cabin, then yes, you are way ahead!

 

For me, I book economically, and only pay about $500 to $600 per person for the two of us, and due to HAL taking liberty with the value of the 1099, The free cruise could easily cost me more money.

[babyher]

A few people are missing a critical point. HAL decides the dollar amount on the 1099. If HAL says you received $3,500 dollars, you owe tax on $3,500 dollars. That is a tax liability of about $1,000 just for the income tax! Then you add port fees, taxes, fuel, and "HAL admin costs", of another $500 or $600 dollars. The free cruise could cost $1,500 dollars for an inside room!

 

I have been on two HAL Vista ship cruises in the last six months and have another in a few weeks. All of them have been Outside cabins, and all less than $1,100 dollars total, for two people.

 

My only complaint about a "free" cruise is that the cruise lines provide a very overpriced 1099. They write off $3,500 dollars and obligate me to pay tax for a cruise price that is two to three times too high.

 

It is possible that the free cruise will actually cost more than just buying the same cruise. However, you are relieving HAL of $3,500 dollars of tax liability, and for that, I am sure they are happy!

 

Now, on the other hand, if you find a booking that ACTUALLY would cost $3,500 for an inside cabin, then yes, you are way ahead!

 

For me, I book economically, and only pay about $500 to $600 per person for the two of us, and due to HAL taking liberty with the value of the 1099, The free cruise could easily cost me more money.

 

 

HI Heather, :)

 

long time no see. How have you been ?

 

Richjoxyz,

 

I agree with that

 

Many times I will watch these game shows like The Price Is Right, where you have to guess the correct price and the prices they give are wayyyyy over what they should be , wheter its a new car or a tube of toothpaste

[CARROW67]

Hi...I was sitting in front of you at Bingo when you won that cruise and was so jealous!! That offer did sound too good to be true, and I guess it was! That's terrible that the "free" cruise would end up costing you that much money....

 

Carol:confused:

[iceman93]

Sorry that the free cruise didn't meet your expectations. Of course HAL could raffle off a free PS for the world cruise and the winners would rave about it, but I think most reasonable people know that something like a free bingo cruise is going to be a pretty basic prize.

 

Regarding the stateroom category you win, though, I always thought that HAL should give you the free cruise in the category you paid for on that cruise. That would seem to be fair, might reduce complaints like the OP's, and wouldn't really cost them that much more.

[Deefar]

Now, what would happen if you decided not to take the cruise? Do you have to take the "free cruise" or can you give it back?

[ger_77]

Now, what would happen if you decided not to take the cruise? Do you have to take the "free cruise" or can you give it back?

 

If you decide not to take the cruise, you forfeit the prize. It's like having a winning lottery ticket and not cashing it in. I believe there is a time limit to the "free cruise" offer; somebody please correct me if I'm wrong.

 

Smooth Sailing! :) :) :)

[iancal]

I think that HAL's practice is a little deceptive. I am ok with charging for port tax but the admin fees sounds off color t me. Not good business practice. I certainly won't be buying another one of those lottery tickets on HAL-as I did on our last cruise.

 

I have found that I cannot really afford anything that is free. Just gave away a trip to Vegas last week to the nice telemarketer who called. Sounds like HAL is not moving in the right direction.

[goat rancher]

Hi,

My Brother-in-law just won a cruise the same way, on our recent trip on the Ryndam. It is NOT transferable and must be used within 18 months....

I doubt he will be able to use it, because we subsidized most of his passage THIS time, and in order to use it he pays not only the "odds and ends" but also the airfare roundtrip from the west coast to Florida......

Now on the other hand, if WE won it, we probably WOULD use it...we'd just go for an inside cabin, pay the extra little fees, and STILL be out ahead AND ON A CRUISE :) :)....

[HeatherInFlorida]

HI Heather, :)

 

long time no see. How have you been ?

 

................

 

Hi, Babyher!:) Good to see you, too. I'm fine ... just enjoying more "real" life instead of sitting in front of a screen half the day . So I rarely visit here anymore and I'm healthier and happier for it.:D But every now and again I have to get my virtual cruise fix.;)

 

A few people are missing a critical point. HAL decides the dollar amount on the 1099. If HAL says you received $3,500 dollars, you owe tax on $3,500 dollars. That is a tax liability of about $1,000 just for the income tax! .................

 

That would sort of depend on your tax bracket. Many of us are thankfully in quite a lower bracket than that which is 28%. When all is said and done, the majority of people in this country are not in that bracket.

 

And I am curious ... shouldn't this be reported on Form W02G (Gambling winnings)? It would seem so since Bingo is definitely gambling. Therefore a person can write off their losses from gambling (including the Bingo aboard ship) and would not owe as much in taxes (assuming one has gambling losses;) ). You can claim up to your winnings, but not above. I'm puzzled that it's reported on a 1099.

[Jade13]

I think that HAL's practice is a little deceptive. I am ok with charging for port tax but the admin fees sounds off color t me. quote]

 

Are we sure it is an "admin fee" and not the taxes and port charges that we all pay?

[newmexicoNita]

I think that HAL's practice is a little deceptive. I am ok with charging for port tax but the admin fees sounds off color t me. quote]

 

Are we sure it is an "admin fee" and not the taxes and port charges that we all pay?

 

I referred to this in my last posting; I can't say for certain but knowing what port charges normally run as well as government taxes my guess is almost all of the $500 is those charges and not administration charges.

 

Nita

[jer_l]

A few people are missing a critical point. HAL decides the dollar amount on the 1099. If HAL says you received $3,500 dollars, you owe tax on $3,500 dollars. That is a tax liability of about $1,000 just for the income tax! Then you add port fees, taxes, fuel, and "HAL admin costs", of another $500 or $600 dollars. The free cruise could cost $1,500 dollars for an inside room!

 

I have been on two HAL Vista ship cruises in the last six months and have another in a few weeks. All of them have been Outside cabins, and all less than $1,100 dollars total, for two people.

 

My only complaint about a "free" cruise is that the cruise lines provide a very overpriced 1099. They write off $3,500 dollars and obligate me to pay tax for a cruise price that is two to three times too high.

 

It is possible that the free cruise will actually cost more than just buying the same cruise. However, you are relieving HAL of $3,500 dollars of tax liability, and for that, I am sure they are happy!

 

Now, on the other hand, if you find a booking that ACTUALLY would cost $3,500 for an inside cabin, then yes, you are way ahead!

 

For me, I book economically, and only pay about $500 to $600 per person for the two of us, and due to HAL taking liberty with the value of the 1099, The free cruise could easily cost me more money.

 

If you can show that the "actual" price being charged other people for your cruise is less than the amount shown on your 1099 I believe you can dispute the full value on that 1099 when paying your taxes. However, you will have to have the correct documentation to do so.

[George W. Bush]

 

I referred to this in my last posting; I can't say for certain but knowing what port charges normally run as well as government taxes my guess is almost all of the $500 is those charges and not administration charges.

 

Nita

 

I just checked the breakdown of the bill for my last cruise, for 6 stops the total taxes and port charges was $605.78. So for a 7 nighter, I can easily see $500 in taxes and port charges.

[hammybee]

 

I just checked the breakdown of the bill for my last cruise, for 6 stops the total taxes and port charges was $605.78. So for a 7 nighter, I can easily see $500 in taxes and port charges.

 

The port charge and taxes on a typical 7 day cruise in the Caribbean is about $110-125 per person, including the fuel surcharge.

 

This is the third reference I have seen in the past week where someone is claiming port charges/taxes/fuel surcharges are running about $500 for two passengers.

 

What am I missing?

[Richjoxyz]

 

The port charge and taxes on a typical 7 day cruise in the Caribbean is about $110-125 per person, including the fuel surcharge.

 

This is the third reference I have seen in the past week where someone is claiming port charges/taxes/fuel surcharges are running about $500 for two passengers.

 

What am I missing?

 

The OP is having to pay about $300 to HAL for "admin costs" associated with the free cruise, on top of the normal port fees and fuel fees. Figure a couple of hundred for port fees, etc, and three hundred for "admin costs" and that equals five hundred. Then add income tax owed due to the 1099 amount, and that becomes the total price of the free inside cabin cruise.