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Get your taxes done using TurboTax
@kermsa wrote:
Thank you for responding. The question (confusion!) entered my mind because of the size of the prize being higher than what I had won in the past and me thinking it somehow put the income in a different category based on what I read at the IRS site. I ended up here because I have used TurboTax for a few years now and I am working out the estimated taxes at this time. Thank you again!
Gambling and contest prizes are still just "other income." There aren't any special rules.
Assuming you get a 1099-MISC with the prize in 3, then Turbotax has a section in the interview just for that. There may also be a list of special circumstance and a box you can check that says something like "contest prize". You may be asked some test questions related to working and self-employment, be sure to answer "no" -- this is not a business, you did not intend to earn a profit, this is not similar work to your regular job.
It's a good thing you mentioned estimated taxes. You may not need to pay the full amount of the taxes, but you at least need to make sure that your payments into the system (from withholding plus estimated payments) is at least 110% of last year's tax liability.