Powwow prizes

In general, prizes won by contestants at a powwow are taxable. However, a prize won by a contestant at a powwow is not taxable if the prize is a Tribal General Welfare Benefit and otherwise satisfies the requirements of Code section 139E and the associated Treasury Regulations.

For prizes that are taxable, you should report to the contestant and to the IRS on Form 1099-MISC, Miscellaneous Information, prizes of taxable income that you paid to the contestant aggregating $2,000 or more during a calendar year beginning after December 31, 2025, in box 3 as “other income.” The $2,000 threshold will be adjusted for inflation for each subsequent calendar year. In order to fill out the form correctly, you must obtain the winner’s U.S. taxpayer identification number (TIN). Use Form W-9, Request for Taxpayer Identification Number (TIN) and Certification PDF to have the person certify their U.S. TIN.

Use Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding PDF instead of Form 1099-MISC to report prize money won by contestants who are nonresident aliens and file Form 1042, Annual Withholding Tax Return for U.S. Source

Income of Foreign Persons. Foreign persons can’t use Form W-9. Nonresident aliens should instead complete Form W-8 BEN, Beneficial Owner’s Certificate of Foreign Status for U.S. Tax Withholding PDF or Form 8233, Exemption from Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual PDF to certify their foreign status and provide their required information to the withholding agent paying the prize money. Generally, these payments are subject to 30% withholding.

However, the winner may be entitled to claim a tax treaty exemption from withholding on some or all compensation using this form.

Find out more about the reporting and filing requirements for foreign persons.