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How do I exclude my Olympic or Paralympic prize money?

SOLVEDby TurboTax2Updated 3 weeks ago

If you received Olympic or Paralympic prize money from the United States Olympic Committee (USOC), or the value of Olympic or Paralympic medals, and the income is not linked to Schedule C, check the Other Income box as well as the Olympic or Paralympic Prize Money box. This transfers these amounts to line m of the Other Income Statement, which supports line 8m on the Form 1040 Worksheet.

Although these amounts are reported in box 3 of Form 1099-MISC these amounts are nontaxable, unless your adjusted gross income, including the amount of your medals and prize money, is more than $1,000,000 ($500,000 if married filing separately). TurboTax automatically treats these amounts as nontaxable and the amount in box 3 on 1099-MISC is included on line 8m of the Form 1040 Worksheet, and then subtracted by including it on line 24c of the Form 1040 Worksheet along with any other write-in adjustments for line 24.

If your adjusted gross income, including the amount of your medals and prize money, exceeds $1,000,000 ($500,000 if married filing separately,) then you must change the amount entered by the program by entering a zero (0) on Form 1040 Worksheet, Other Adjustments to Income Smart Worksheet, line H, Olympic and Paralympic prize money.

If the income is linked to Schedule C, TurboTax automatically treats these amounts as nontaxable and the amount in box 3 of Form 1099-MISC is included on line 1 of the linked Schedule C, and then subtracted by including it on line 48 of Schedule C along with any other expenses for line 48. TurboTax will enter the nontaxable amount and a description of USOC prize money.

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