Reporting prize money

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Our daughter won prize money from music competitions. She did not receive and form(s) (1099 or W2G) from the contest organizers. Is she required to report this as income? Where is it reported in the turbotax forms and what do we call it?

AnnetteB6Answer

Employee Tax Expert

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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AnnetteB6

Answer

Employee Tax Expert

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