How do I report race car driver winnings on a 1099-MISC form Box 3 or Box 7?

[ColeenD3]

It depends. Is this his profession? Does he do this to earn a living or is it a hobby? Did he just win as a one-off type of situation?

Prizes and awards are entered in Box 3.

Box 3. Other Income Enter other income of $600 or more required to be reported on Form 1099-MISC that is not reportable in one of the other boxes on the form. Also enter in box 3 prizes and awards that are not for services performed. Include the fair market value (FMV) of merchandise won on game shows. Also include amounts paid to a winner of a sweepstakes not involving a wager. If a wager is made, report the winnings on Form W-2G.

Non-employee Compensation is entered in Box 7.

[cforrester99]

These are drivers who do this as a hobby. I'm being told it should be entered in Box 7 because they are providing a service of a show. I put it in Box 3, because I saw it as receiving prizes over $600. They do pay an entrance fee, so I don't know if that makes a difference or not.

[DaveF1006]

This is a good question and can be interpreted in different ways. as a seasoned tax professional,I would report it in Box 3 as a prize award unless the drivers do this on a consistent basis, then it would definitely be in Box 7. You might contact the drivers to see if they receive 1099 MISC from other sources. If so, then these winnings should be in Box 7.