Yes, the prize money is reported as income.
Use the following steps to enter the prize income. It will be reported on Form 1040 Schedule 1 Line 8.
- Go to the Income section of the tax return
- Scroll down to the Less Common Income category
- Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
- Click Start or Update beside Other Reportable Income at the bottom of the section
- Enter your description (prize money) and the amount
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