By JLP | December 11, 2006
I received the following question from a reader:
Just wondering if you could provide a good tax resource or your opinion? I won a raffle prize at my company sponsored Christmas party. This was a free raffle which you were entered in for simply attending. The amount of the prize is valued at $600. Are taxes applicable on this as I did not pay to enter?
Yes, it is taxable. You need to report it on Line 21 on Form 1040 (PDF). For more information, see this section in Publication 17. However, being that it is only $600, it is doubtful that it will have much effect on your taxes.
Hope this helps!