Taxation of Free Trip

All raffle winnings are taxed as ordinary income. You may have gotten a 1099 or W-2G for the value, but even if you didn’t, the value still needs to be documented as miscellaneous income on Line 8b of Schedule 1 2022 Schedule 1 (Form 1040) (irs.gov)

Here’s the paragraph from the 1040 instructions 2022 Instruction 1040 (irs.gov) on raffle winnings (my bolding):

Line 8b

Gambling. Enter on line 8b any gambling winnings. Gambling winnings include lotteries, raffles, a lump-sum payment from the sale of a right to receive future lottery payments, etc. For details on gambling losses, see the instructions for Schedule A, line 16.

Attach Form(s) W-2G to Form 1040 or 1040-SR if any federal income tax was withheld.

AJ

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