Win dinner with Barack . . . It’s gonna cost you?
- Roundtrip airfare (valued at $1,200)
- One night in a hotel ($200)
- Dinner with President Obama ($200)
The rules state that “all federal, state and local taxes associated with the receipt or use of any prize are the sole responsibility of the winner.” The $1,600 is includible in each winner’s income under § 74 — at the 35% rate, that results in $560 of federal income tax.