Game Winning Question (deduction, tax, income, check)

[breeinmo.]

I haven't won it yet, but if you win a prize worth $1100 on a game site, would you have to pay taxes? TIA

[breeinmo.]

This prize would be won in California.

[MPRetired]

Legally, if you find $10 on the street and keep it, you have to declare it as income for tax purposes.

Short answer: Yes.

[ocnjgirl]

You would pay both state and federal taxes on it, yes.

[breeinmo.]

Thank you two, I appreciate it.

[sj08054]

Most likely yes if you are getting a 1099 with the check. You may want to look into deduction for income from hobby. I used to get 1099 for tournament winnings. I offset most of them by keeping receipts for travel, gas, equipment, etc..

[freemkt]

The game sponsor would certainly send you a 1099 form at the end of the year since an $1100 prize is greater than $600.