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.
Ride Together Pierce 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.