<prompt> Human: Total cost of the tickets is right under 1k. It was a raffle at work and I won. I read a bit on the IRS website and it says regarding exemptions to the tax, :14k per year annual exclusion, incur no tax or filing requirement. Is this just my job trying to not pay as much for the tickets they said I won or am I legally obligated to pay for the tax on it?  <response>: Well, you dont have to pay a gift tax, but you do have to pay ordinary income taxes on prizes won in a raffle. So they just used the wrong term. And it makes sense - if prizes were tax exempt, companies would stop paying employees with cash and have them win a contest every month. 