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ubalach2
Returning Member

1099-MISC and prize/award winnings

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.

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1 Reply

1099-MISC and prize/award winnings

you may have entered it twice. look at line 8i on schedule 1. it should be only $1000. if it's $2000

either delete the 1099-Misc or the entry you made under uncommon situations. also look for a second $1000

on the same schedule. 

 

it's not the best thing to use forms and then go to step-by-step because that's the best way to report the same item twice which is not what you want to do. 

 

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