Tax Compliance Guidelines – Taxation of Gifts, Prizes and Awards

Related Forms

  • Tax Filing

    Prize Tax Data Collection Form

    Substitute Form W-9

    Form W-8BEN


A prize has to be processed in one of two manners to ensure appropriate reporting by the University. If the contest prize is a cash payment, it will need to be processed through KFS. If the contest prize consists of a non-cash item, please refer to Indiana University Policy Contests, Drawings, Games, and Prizes, FIN-ACC-640 for processing guidance. Some examples of non-cash items are tangible personal property and complimentary services.

The value of a prize is considered taxable income to the recipient and may require the University to report the value of the prize to federal and state revenue agencies. Therefore, units and organizations must complete the University Prize Tax Data Collection Form within 10 days of distribution of any non-cash prize.

Non-cash prizes won by University faculty and staff will be added to payroll as non-cash earnings. The amount is subject to Social Security and Medicare taxes.

See Prizes and Awards for information on international students and for further details.

For questions, please contact the Tax office by filling out the Office of the Controller’s Contact Us form.

CATS Presentation & Training