Tax Reporting for Prizes Awarded to Winners

If your business conducts contests and awards prizes, be sure to comply with tax reporting requirements. For 2025, prizes valued at $600 or more were subject to reporting on Form 1099-MISC. For 2026, only prizes valued at $2,000 or more have to be reported. You must have these prize winners complete Form W-9 to collect their Social Security numbers, which are included on the W-9s. Be sure to retain the W-9s for at least 4 years. #IdeaoftheDay

Be sure to check out the Online Tax Book Supplements!