<prompt> Human: I use a fairly popular food delivery service that recently in my city has had a contest recently where the prize is 25 dollars off any order for 365 orders which I have confirmed. The estimated ARV being 9,125. Since all contest winnings are taxable by the US Govt, I know I will have to write this down around tax season. I looked a bit into this, but since I am regrettably not well versed in tax law, I just want some help seeing what I need to look forward to come tax season, and if accepting the prize is worth it. I do have to pay it as a lump sum for the year, I have asked.I make about 21-25K a year part time college student. If Im correct with how I understood the tax laws, Id be looking to pay about 15 which totals to 1,368 and change, on top of federal and state taxes which should be putting me at 2,000Just looking for any overall advice and guidance before I submit the form to officially accept the prize, to see if its worth it. I mean on one had, free food that I dont have to worry about. On the other hand, if Im not understanding any of this correctly, I may be shooting myself in the foot financially.Help a dude out? Assistant: 1,368 and change, on top of federalThe 1368 sounds like that would be the federal tax. What do you mean by saying on top of?Isnt receiving 25 of free food per purchase worth paying 3.75 per purchase? Its kind of like an instant 85 off coupon on the first 25 of your purchase.Curious: Is it really off any 365 purchases, or any purchases within 365 days, up to 365?Human: I guess by on top of, I meant in addition to. Based on my understanding again, I could be reading this totally wrong since I am not the best when it comes to this I would pay taxes on this plus whatever I owe federally. Are you saying that this would be my federal tax?  <response>: Income is income. You dont pay a prize tax in addition to your income tax. Just income tax. 