Teenage daughter won an academic award with a cash prize -- How to handle for tax purposes?

[Anonymous]

Hello all. My 14 yo DD won an academic award with a cash prize of $1,000 attached. She doesn't have a job or any other source of income. Do we include it in our general tax filing or must we do something individual for her? Thanks for your help!

[Anonymous]

Send it to me!!

[Anonymous]

I honestly don't think this is an issue.

[Anonymous]

Did they send you a 1099? If so, file a simple 1040 EZ form for her. The standard deduction will more than wipe out any liability.

If not, don't worry about it.

[Anonymous]

Anonymous wrote:I honestly don't think this is an issue.

I would have completely forgotten except she received a 1099.

[Anonymous]

For lottery prizes, $600 +/- is the cut off for prize taxes.

Is it a prize or a scholarship.

[Anonymous]

Anonymous wrote:Did they send you a 1099? If so, file a simple 1040 EZ form for her. The standard deduction will more than wipe out any liability.

If not, don't worry about it.

Yes, I forgot that important part of business in the original post. So I should fill out a separate tax return for her specifically? Thanks!

[Anonymous]

Anonymous wrote:For lottery prizes, $600 +/- is the cut off for prize taxes.

Is it a prize or a scholarship.

It was a prize for National History Day.

[Anonymous]

Sure, fill it out for her. I did returns for my kids at that age due to investment income. Use the free version of turbo tax on the IRS website.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Did they send you a 1099? If so, file a simple 1040 EZ form for her. The standard deduction will more than wipe out any liability.

If not, don't worry about it.

Yes, I forgot that important part of business in the original post. So I should fill out a separate tax return for her specifically? Thanks!

I would. However, she should not claim herself as a dependent since presumably you will claim her on your own tax returns. She doesn't need the personal exemption -- she does.

It goes on Line 21. IRS Publication 17:

"Prizes. Scholarship prizes won in a contest are not scholarships or fellowships if you do not have to use the prizes for educational purposes. You must include these amounts in your income on Form 1040, line 21, whether or not you use the amounts for educational purposes."

https://www.irs.gov/publications/p17/ch12.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:For lottery prizes, $600 +/- is the cut off for prize taxes.

Is it a prize or a scholarship.

It was a prize for National History Day.

TMI to ID yourself.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For lottery prizes, $600 +/- is the cut off for prize taxes.

Is it a prize or a scholarship.

It was a prize for National History Day.

TMI to ID yourself.

Meh. She won an award. It's not like I would mind telling people that.

[Anonymous]

You aren't just telling people that she won an award. You are linking the computer you are on to her name and your name and...

[Anonymous]

For all we know, this prize is given out in every county in the United States. As we all know, not everyone that uses this site is from the DC area.

[Anonymous]

Anonymous wrote:For lottery prizes, $600 +/- is the cut off for prize taxes.

Is it a prize or a scholarship.

Haha. No.

600 is simply the amount under which a 1099 is issued.

1 dollar is taxable.