My wife won $1000 in an essay competition and received a 1099-MISC for it. When entering the information for the 1099-MISC, when asked "Does one of these uncommon situations apply?" I clicked on "This was prize winnings." Later on under Wages & Income when it asks for Less Common Income, do I enter the $1000 again under Prizes, Awards, and Gambling Winnings?
I tentatively entered it and saw that my Tax Due amount increased again, but aren't I getting taxed twice for the same thing? Thank you.