pink1e WELCOME!!!
I found:
The IRS requires that you pay taxes on all prizes, big, small, and everything in between whether or not the sponsor reports it to them. When reporting your prizes as "other income" you submit the fair market value of the prize (FMV), what it's really worth, not the approximate retail value (ARV). You need to have documentation on file proving it's true value though. On trips, make sure you print up the actual costs of the exact flight and seat, hotel room, and other expenses as your backup documentation. Trips almost always have the most inflated ARV's.
Annie:
All wins are taxable. After you receive $600 or more from any sponsor, they are required to send you a 1099. This means you can have a $50 win, a $100 win and a $450 win from the same sponsor and they are required to send a 1099. It does not have to be a $600 single win. Many sponsors will require the ss# in the event you win several prizes from them that total $600 or more and they need to send you the 1099.
You should report all wins on your taxes even if you don't receive a 1099. Regardless of the SS#, they have your name/address. It is very easy for the IRS to put those together.
The best advice I can offer everyone is to make sure you consult a competent tax professional.
Congrats on the Win!
