Carl
Level 15

Get your taxes done using TurboTax

Why bother? If $50 changes your tax liability (it most likely won't) then it would only reduce it by $1 at the absolute most. But even so, no, your entry fee is not deductible unfortunately. However, if you won a prize in excess of the entry fee, then the amount in excess of the entry fee "may" be taxable income. It just depends on to many factors to list here.