Ask an AI Accountant

Congrats on your win! Yes, you do need to report that $1,000 prize on your taxes. The IRS considers almost all income, including prizes and awards, as taxable.

The radio station should send you a Form 1099-MISC or 1099-NEC if the prize value was at least $600. But even if you don't receive a form, you're still required to report the income. You'd report this on line 8 of Schedule 1 (Form 1040), which is for additional income not reported on your main Form 1040.

As for how much tax you'll owe, it depends on your total income for the year and your tax bracket. The prize money gets added to your other income and is taxed at your marginal tax rate. So, if you're in the 22% tax bracket, for example, you'd owe $220 in federal tax on that $1,000 prize. State taxes may also apply.