RaceawardandH1B
Junior Member
What is the name of your state (only U.S. law)? Massachusetts
I am Canadian working in the U.S. with an H1B Visa. I am an amateur athlete, and regularly run races and win prize money - sometimes winning large-ish amounts , e.g. $500. Although under $600, the race director taxed me $150 on the total amount (thus a 30% tax). They also incorrectly issued me a 1042S assuming that I'm a non resident which is NOT the case (I am a resident for tax purposes, which they don't understand). In any case, I would like to claim the prize money so I can recover $70 back from the amount that was taken from me in tax (I would then have to ask the race director to issue me the proper 1099 instead). I know it sounds like a paltry amount but this is the second year that this has happened and I would like my money back as it is a lot to me, and, I'd like to tdo this on a matter of principle and for future races.
My question is - AM I legally ALLOWED TO WIN PRIZE MONEY and claim it on my 1040 tax return? In effect, I did "earn" this money - though not in my professional field or work. Is this illegal (as it may be considered "work" outside of my employment as stipulated in my H1B? Should I submit a form 1099 for my athletic award with my 1040 tax return?
I am Canadian working in the U.S. with an H1B Visa. I am an amateur athlete, and regularly run races and win prize money - sometimes winning large-ish amounts , e.g. $500. Although under $600, the race director taxed me $150 on the total amount (thus a 30% tax). They also incorrectly issued me a 1042S assuming that I'm a non resident which is NOT the case (I am a resident for tax purposes, which they don't understand). In any case, I would like to claim the prize money so I can recover $70 back from the amount that was taken from me in tax (I would then have to ask the race director to issue me the proper 1099 instead). I know it sounds like a paltry amount but this is the second year that this has happened and I would like my money back as it is a lot to me, and, I'd like to tdo this on a matter of principle and for future races.
My question is - AM I legally ALLOWED TO WIN PRIZE MONEY and claim it on my 1040 tax return? In effect, I did "earn" this money - though not in my professional field or work. Is this illegal (as it may be considered "work" outside of my employment as stipulated in my H1B? Should I submit a form 1099 for my athletic award with my 1040 tax return?
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