Are there any tax consequences for being a prize winner?
As stated by the IRS, subject to certain exceptions, the cash value of prizes or awards won in a drawing, quiz show program, beauty contest, or other event, must be included on the tax return as taxable income. Taxpayers must also report the fair market value of merchandise or products won as a prize or award, as taxable income.


Pierce Trips and partnering organizations will comply with the IRS reporting requirements for prize winners. According to the IRS instructions, the organization must submit a Form 1099-MISC for any person receiving over $600 in prizes and awards. Recipients of prizes qualifying for a 1099-MISC must agree to provide the information necessary for the 1099-MISC in order to receive their prize; they should expect to receive their forms in time to file their appropriate tax returns.

Show All Answers

1. What is the Pierce Trips Calendar?
2. Where is the Help button for the Trip Calendar?
3. How do I edit trips?
4. What counts as an alternative commute option to driving alone?
5. What is the difference between trip purposes?
6. How do I customize "Your Stats"
7. How are achievements calculated?
8. How do I count my Compressed Work Week Schedule?
9. Are other types of foot-powered transportation eligible under the "walking" category?
10. Can I be entered to win prizes for all types of trips?
11. Are there any tax consequences for being a prize winner?
12. I'm not interested in prizes or material rewards. How do I opt-out of the prize drawings?
13. What if I drive a hybrid or electric vehicle?
14. Why are motorcycles not included as an alternative mode?
15. What if I use a scooter or power-assisted bicycle?
16. What is Pierce Trips?
17. Who sponsors Pierce Trips?