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Chris W. Rea
Chris W. Rea
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Typo: individual share was $300
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I won a hackathon, the prize was $2000 in the form of a check made out to me. I was part of a 6-person team and we split the prize money as follows:

  • $200$300 to each team member (including me)
  • additional $200 to one member (not me) whose hardware broke in service of the project

I cashed the check myself and paid each person out-of-pocket with personal check. I got a 1099-MISC for this with the amount listed as "Other Income". How can I avoid owing taxes for the full $2000?

On Turbo Tax, if I report this income as a prize money it does not offer any options for related deductions so I'm thinking maybe I should list it as a job try to deduct the $1800 I paid out to other people? Any advise is welcome here, as my tax debt is currently more than my share of the winnings.

I won a hackathon, the prize was $2000 in the form of a check made out to me. I was part of a 6-person team and we split the prize money as follows:

  • $200 to each team member (including me)
  • additional $200 to one member (not me) whose hardware broke in service of the project

I cashed the check myself and paid each person out-of-pocket with personal check. I got a 1099-MISC for this with the amount listed as "Other Income". How can I avoid owing taxes for the full $2000?

On Turbo Tax, if I report this income as a prize money it does not offer any options for related deductions so I'm thinking maybe I should list it as a job try to deduct the $1800 I paid out to other people? Any advise is welcome here, as my tax debt is currently more than my share of the winnings.

I won a hackathon, the prize was $2000 in the form of a check made out to me. I was part of a 6-person team and we split the prize money as follows:

  • $300 to each team member (including me)
  • additional $200 to one member (not me) whose hardware broke in service of the project

I cashed the check myself and paid each person out-of-pocket with personal check. I got a 1099-MISC for this with the amount listed as "Other Income". How can I avoid owing taxes for the full $2000?

On Turbo Tax, if I report this income as a prize money it does not offer any options for related deductions so I'm thinking maybe I should list it as a job try to deduct the $1800 I paid out to other people? Any advise is welcome here, as my tax debt is currently more than my share of the winnings.

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Splitting Hackathon Prize Money to minimize tax debt

I won a hackathon, the prize was $2000 in the form of a check made out to me. I was part of a 6-person team and we split the prize money as follows:

  • $200 to each team member (including me)
  • additional $200 to one member (not me) whose hardware broke in service of the project

I cashed the check myself and paid each person out-of-pocket with personal check. I got a 1099-MISC for this with the amount listed as "Other Income". How can I avoid owing taxes for the full $2000?

On Turbo Tax, if I report this income as a prize money it does not offer any options for related deductions so I'm thinking maybe I should list it as a job try to deduct the $1800 I paid out to other people? Any advise is welcome here, as my tax debt is currently more than my share of the winnings.