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.
https://www.irs.gov/uac/reporting-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...
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
