Each year the Rotary Banquet is one of the highlights of the community calendar—an evening of fellowship, good food, and a chance to support projects that benefit the entire area. One of the most anticipated parts of the night is the raffle drawing, where lucky ticket holders may walk away with some impressive prizes.
While the excitement of hearing your name called is hard to beat, there is one detail many people don’t think about ahead of time: taxes on raffle winnings.
When a Prize Becomes Taxable
In the eyes of the Internal Revenue Service (IRS), raffle prizes are considered taxable income...