rjs
Level 15
Level 15

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@123champ wrote:

The cash prize was $150, so I suppose it won't be reported to the IRS (or to her) on a 1099-MISC.


Even if she doesn't get a 1099-MISC for the prize, she still has to report the income on her tax return. $150 plus "chump change" will probably result in no tax being due, but she still has to file the return to show that.

 


@123champ wrote:

will have the daughter file a separate return.


I wouldn't leave her on her own to file the return. We see a lot of posts from people whose college students filed their own tax return and did not indicate that they can be claimed as a dependent. It causes a lot of trouble and aggravation for both the parents and the student. You want to make absolutely sure that she gets that right.