Prizes

Prizes. A. This type of income is defined as follows: 1. A prize is generally something won in a contest, lottery or game of chance. B. This type of income is treated as follows: 1. A prize is counted as unearned income subject to the general rules pertaining to income and income exclusions. a) Gambling losses are not subtracted from gambling winnings in determining an individual’s countable income. b) If a person is offered a choice between an in-kind prize and cash, the cash offered is counted as unearned income even if the individual chooses the in-kind item, regardless of the value, if any, of the in-kind item.