How should raffle winnings be reported?
August 22, 2011
Date: Fri, 24 Oct 2008
A company holds a raffle for the United Way. Employees buy raffle tickets and win various prizes, such as cameras, beauty baskets and IPODs. Should the winnings be reported as taxable on the employee's W-2 statement, or should they otherwise be reported on the employee's income tax returns?
Have a good day,
Date: 4 Nov 2008
Prize winnings aren't wages and so shouldn't be reported on Form W-2.
Prizes with an aggregate value of $600 or more should be reported by the sponsoring organization on Form 1099-Misc.
Prizes are taxable income and should be reported as other income on Form 1040.
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links