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Online Hackathon prize money taxation and exceptions

Personal Finance & Money Asked on July 10, 2021

I’ve participated in one of the Hackathon competition on DevPost and won the prize amount of $3000 USD.

However, the claiming section asked me to fill-up the W-8BEN tax form as I’m not a US resident. The form has a field for income type, but not sure about few things.

  1. What should need to be filled in income type?

  2. It is not a lucky draw or kind of gambling though, will I have to pay tax to the US government?

  3. Is there any chance to claim 0% taxes from the US government? or another exception?

  4. What will be the final amount I will receive on-hand?

Other note:
I individually won the award, there is no other team member to share this amount with.

One Answer

If someone facing the same issue, here is the tip. Fill out Part I, Part II (9) and part III

Leave the Part II (10) blank and submit. You'll get your full amount.

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Hope this helps!

Correct answer by Div on July 10, 2021

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