<prompt> Human: The prize is valued at 5,100 USD which includes a 1000 gift card. How much tax do I have to pay on this prize?I live In California if that matters.Thank you  <response>: I think awards and prizes will get put on your 1040 line 21 as other income.You wont pay Social Security and Medicare taxes on it, so in that regard it is not exactly like getting a raise. 