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Science Fair Prize Awarded to U.S. High School Student Dependent of a Resident Alien

Question

We have awarded a science fair prize of $250 to a high school student who is attending high school in the US while her father teaches/works/researches at a local university.  The father files as a resident alien in the US. 

Do we need to report or withhold on the payment to the daughter?  Do we need to get documentation for the daughter and/or the father?  What other information do I need to obtain to consider whether there is a filing or withholding requirement for this prize?

Answer

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