What $ amount do you start paying taxes for a cash prize?

I have just recently won $500 dollars cash prize at a contest at my work. My work taxed the cash prize.... I thought that the taxes start at $1000. Could someone clear up the Tax Rules on Cash Prizes less than $1000 in Pennsylvania?|||Legally you pay on a $1 prize.





In PA, if it's a win from the state lottery, you don't pay state income tax, otherwise you do.





So the $500 is taxable for both federal and state.|||$1





If it is through work, any amount should show up in your W2 and be taxed as ordinary income.|||In the usa in the here and now the rule is everything is taxed from the first dollar to the funeral.