Is the $10,000 prize I won as a game show contestant taxable?
Answer:
Yes. A prize or award of merchandise is taxable at its fair market value. In general, the FMV would be the amount a person would receive upon resale to the general public.
There is an exception when prizes and awards are non-taxable. In general, the exception applies when the award or prize is in recognition of charitable, religious, educational, scientific, literary, civic or artistic achievements.
There are other criteria involved. Speak to your local CPA for the taxability of the prize or award won.
There is an exception when prizes and awards are non-taxable. In general, the exception applies when the award or prize is in recognition of charitable, religious, educational, scientific, literary, civic or artistic achievements.
There are other criteria involved. Speak to your local CPA for the taxability of the prize or award won.
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