Can I deduct expenses off of prize money from a 1099-MISC form?

Yes, you can.

The IRS would generally consider prize money from a sport as hobby income, especially if the expenses are greater than your income. 

Hobby income is not taxable for self-employment taxes and it is reported on line 21 of form 1040, and expenses from the hobby are reported as a miscellaneous itemized deduction (this deduction is limited to the gross income from the hobby).

However, if your participation in this sport is conducted as a trade or business, you would could upgrade to TurboTax Self-employed and report the income and expenses on schedule C.

To report hobby income and expenses in TurboTax, follow this path in the program:

1. Click on Federal on the left-hand menu.
2. Click on Wages across the top.
3. Scroll down to Less Common Income and click Show more.
4. Click Start or Revisit on the line labeled Miscellaneous Income, 1099-A, 1099-C.
5. Click Start or Revisit on the line labeled Hobby income and expenses.
6. Enter your hobby income and all of your expenses in a lump-sum figure. If the expenses are more than the income, you can simply enter the income amount on both lines (TurboTax will apply the limitations regardless of what you enter).

So if I received the 1099-MISC then would I not file it as that and just in the hobby income and expenses? Or would it need to be filed in both places?

No just enter it once using the above instructions.  If you've already done it another way, go and delete those entries and start over.

No -- and the person who says you can above is misinformed.  This deduction was eliminated for tax years 2018-2025 under the Tax Cuts and Jobs Act (TCJA)

The prize money is fully taxable and no deductions are allowed from this income. 

 

You should add it under Other Common Income, 1099-MISC.

 

It is not subject to self-employment tax. 

 

Everything You Need to Know About Filing Taxes on Winnings