### Question
What is the definition of qualified prize?


### Answer
The definition of **qualified prize** is as follows in *26 U.S.C. § 451*:

> any prize or award which—


(i) is awarded as a part of a contest, lottery, jackpot, game, or other similar arrangement,


(ii) does not relate to any past services performed by the recipient and does not require the recipient to perform any substantial future service, and


(iii) is payable over a period of at least 10 years

#### Citation:
  - *26 U.S.C. § 451*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart B-Taxable Year for Which Items of Gross Income Included**

