I received a 1099-MISC for winning a cash prize in a contest, does the IRS tax prize money at the same high rate as normal freelance income?

Question

Kohari Gonzalez Oneyear & Brown · Accepted Answer

Prize winnings reported on a 1099-MISC are often treated differently from freelance compensation, and the tax result can depend on how the payment was earned, your overall income picture, and whether any related expenses or withholding apply. In many cases, contest prizes are included as taxable inc For an answer applied to your exact numbers, bring this question to a licensed KGOB CPA in a focused session and leave with a clear next step.