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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
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Experience:  15years with H & R Block. Divisional leader, Instructor
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We are a church in Ohio conducting a car raffle. What tax

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We are a church in Ohio conducting a car raffle. What tax implications should we be aware of.
Submitted: 6 years ago.
Category: Tax
Expert:  Robin D. replied 6 years ago.
The prizes are taxable income to the winners so the non-profit must ensure it properly reports the raffle prizes to the I.R.S. Generally, raffle prizes must be reported on Form W-2G with a copy to the winner if a) the amount paid, reduced by the amount the person paid for the chance to win a prize, is $600 or more; and b) the payout is at least 300 times the amount of the wager.
Ensure the winner understands his or her tax reporting obligations and is eligible to accept the prize.
Many juridictions require non-profits to obtain a permit to conduct a raffle. Permits can take weeks or even months to process. Here is the url for information specific to OHIO

I sincerely XXXXX XXXXX information is helpful,
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