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.