Small wins ($1K & under) you don't normally get 1099'd on but are supposed to report . Larger wins run by judging agencies you normally do. But as mentioned, all you have to do is document the lesser value & that's what you'll be taxed on - and it's still normally less than if you did it. Another example of how it isn't equiv & how they inflate - someone I know won a cruise but couldn't take it; judging agency offered cash equiv - 'cruise' was valued at $5K; the 'payout' for not taking it was $1K - big dif! they took the $1K & their taxes were based on that. cheers. shaorn