Hi PF!

This question is related to a competition prize money in California, USA.

My team, 3 people, won some money at a competition. It will be split three ways but we don't know how to do the tax. I've done a fair bit of research and found out that the guy who received the winning check (not me), should send us the money evenly, and we will file the taxes as individuals (1099 and 1069). It this the best way to go about it to be fair to everyone?

Currently the guy wants to take 25% of our cut because that's how much the gamble winning is and file the taxes through him. But gamble money is not the same as prize money.

I would love some advice, and if this is not the right sub, please direct me towards one! Thank you.