Must you pay taxes when winning a trip?

When you participate on a game show, or enter into a sweepstakes, or any other charitable event that results in a prize winning trip to anywhere in the world, you are to pay taxes based on the value of the trip you won. The trip will be seen as miscellaneous income earned and would be taxed with your income taxes to the state in which you won the trip. The organization that provided the trip will issue you a Form-1099 that will show the IRS the taxed amount from the value of the trip you had won. It does not matter when you take the trip, the organization will automatically file your 1099 as soon as they can.

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