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  1. #1
    Join Date
    Nov 2007

    Default Tax Laws on a Video Game Competition

    Hello I will be holding a video game tournament with a cash payout of around $2,000 split into 16 people. No person will receive over $400. I will be taking in about $8,000 in entry fees. I was wondering if and/or where taxes would be applied. I have done these in the past and they have been much smaller scale so I never had to consider this variable. I do not have an official business registered with the state. Anyways, I was just wondering if I was susceptible to any sort of taxation for running this event. I live in Omaha Nebraska.

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Tax Laws on a Video Game Competition

    You should issue a 1099-MISC to any person who wins $600 or more within one calendar year, and you should keep good records of who received prizes.

    As you didn't ask, I'm assuming you have already verified that your contest complies with the laws of your state.

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