Steak Cook Off Payout?!

Steak Cook Off Payout?

I am hosting a steak cooking competition (In Texas) and would like to award cash prizes for the top 3 winners. I am trying to find out the legality of doing this. I would prefer to award cash as opposed to trophies, etc...I was hoping someone could offer some information (pertaining to the legality of cash prizes in a cooking competition) or at least point me in the right direction..

Thank you,

Erik

I compete in many Dutch oven cook-offs around the Western U.S. and organize and run two such competitions every year. As fas as I know there is no problem giving out prize money to any one person without any problems (taxes). In California I believe it is $999.99 for no taxes then at $1,000.00 the prize winner must pay state and federal taxes for the winnings because it is then considered income.. Check the Texas Franchise Tax Board to be sure. When I'm entering a competition CASH is awesome but I like having something in my hand to show my friends my prize, weather it is a belt buckle, plaque, or trophy. "show off prizes "along with the cash awards are the icing on the cake! Have fun with your trophys or plaques and attach a plastic chew toy steak to them! LOL! It will att to the novelty of the awards.
Good Luck!