CATS

See Policies Related to Other Financial Functions
http://www.indiana.edu/~vpcfo/policies/other/home.html
VII-4 Drawings, Games, and Prizes
http://www.indiana.edu/%7evpcfo/policies/other/vii-4.html.docx

See Supporting Form When Using FIS Disbursement Voucher in FIS for Funding for Students:
http://www.indiana.edu/%7ecats/presentations/2006/SUPPORTING%20FORM%20WHEN%20USING%20FIS%20DV%20FOR%20STUDENTS_06_26_2006.doc

Things to Know:

Prizes and Awards – 4866:

• Per IRS guidelines, “prizes” and “awards” that are not for the purpose of aiding the student’s study, training, or research are not considered scholarships or fellowships.  Examples include a prize paid for winning a piano competition or a prize paid for winning some sort of contest.
• Prizes which are includible in gross income include amounts received from radio and television giveaway shows, door prizes and contests of all types. Cash scholarship prizes won in a contest are not considered scholarships if the student is not required to use the disbursement for educational purposes. Note: A scholarship prize that can only be used when enrolled as a degree candidate at an educational institution is a qualified scholarship (IRS Publication 970). Example: A competition is held and prizes for 1st, 2nd, and 3rd places are awarded to students.
• If considered a prize, process through the DV process. Note: Documentation on how the prize contest was conducted should be entered into the DV notes section. IU reports such payments for tax purposes on Form 1099-MISC. Contact Rozzie Gerstman at gerstma@indiana.edu or 855-1123 with questions.