1099misc prize

Report the total amount of the 1099-misc. Then enter another 1099-misc with a negative number equal to what amount you want to exclude and label as “pass through”.

thank you!  do i need to also report the persons SS# to whom i am transferring the income?  how does the IRS know  

If you make a separate entry to subtract part of the winnings and don't identify the other winner, it is possible that the IRS may eventually contact you for more information. However, it is up to the other party to report the prize income on their return.

If this involved gambling winnings, IRS Form 5754 should have been completed at the time of the winnings.