Q: Are winnings from an art contest considered taxable income?
A: Yes. If the award is over $600, they are supposed to issue a Form 1099. Either way, it's still taxable. You'd report the income on Form 1040, Line 21 "other income."
I have provided a link to the IRS website page on miscellaneous income.
A: Very likely, yes. The default rule for taxability of income is: if it any material benefit is received or exchanged in a tax year it is income it is taxable unless stated otherwise by applicable law. Contest winnings (whether legal or illegal) are counted as income, but grants and some raffles are usually excluded.
If you received a from that is reported to the IRS (e.g. a 1099), you must report the income. For money that is not reported you must also report the income, but many people do not...
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