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Do you have to pay Sweepstakes Taxes in the US?

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About sweepstakes taxes and according to the US law, prize money won in any form should be reported along with your income to the tax authorities by the end of the year when you file your tax accounts without fail. It enables them to keep proper track of where and all the money goes, especially the prize money. The rules pertaining gambling are a little bit different. Casinos are to withhold taxes for prize money that is equivalent to 600 dollars and above. Pertaining rules and regulations are given in detail in the IRS forms. Tax expert’s guidance is mandatory while you are initially preparing your blueprint for the sweepstakes. The rules and regulations are to be scrutinized well before publication and any discrepancies are to be corrected instantaneously to avoid any litigation in the future.

Why do you have to pay Sweepstakes Taxes in the US? One of the important revenues for the government comes from the taxes paid for the sweepstakes by the sponsors. Since, it is similar to the lottery schemes the taxes levied are quite heavy though. Hence, the income amount is also quite substantial enough for the federal and state governments. It is hard to persuade them to evade these taxes that bring vital income to their treasury.

How much do you have to pay Sweepstakes Taxes in the US? There is a common myth that there is no tax money that is to be paid for those sweepstakes that have prize money worth as 600 dollars or less. In fact, it is not true. There are taxes for each and every other sweepstakes. The proportionate calculations are too technical and would vary accordingly as well.

When do you have to pay Sweepstakes Taxes in the US? It would be deducted from your prize money automatically when you are the winner in some cases, and in some other cases the method varies though. Sweepstakes obligators will have to report the prizes to the IRS. The IRS instructions given along with the Form 1099, would clearly state the pertaining rules and regulations too. The winnings in the sweepstakes are to be reported mandatorily as other income. One of the members asked if we do you have to pay Sweepstakes Taxes in the US. It was really an important question that has to be answered in detail though. All the pertaining details should be known to all those participants in the sweepstakes mandatorily.

In our next article will be talking about the possibility of a lump sum payout.

Related Topics:
US Lottery and Taxes, Facebook Contests and Sweepstakes, pch sweepstakes

Do you have to pay Sweepstakes Taxes in the US? 4.63/5 (92.50%) 8 votes

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Juliette is a professional sweeper with a great expertise. She started this sweepstakes blog in 2007 to share tips and advices Google+

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25 Responses to “Do you have to pay Sweepstakes Taxes in the US?”

  1. Amy S. says:

    I would pay off all my debts med. mortgage, etc. I would help all my siblings and make sure the grand kids are set up with a college fund. I would like to help all the care supporters in my area for food banks and disaster. I have always wanted to be able to do this and what a blessing it would be to deliver my dreams to all these lovely people.

  2. Nicole with harris says:

    First I would give to my church because the Lord is the only one who gives and send blessings. Then I would definitely pay off all of my debts. I would buy my a nice car and a nice home.. I would take care of my family and help friends if they need a blessing. ..I would continue to bless others because when I bless other people the Lord blesses even more

  3. penny louise heard says:

    I believe my chance of winning is as good as anyone else. The money would go to my church my large family that grew up poor. My husband needs a new vehicle his barely gets him places. My son needs a new vehicle. My brother has a heart condition and continues to work hopefully I can help all my nine siblings and be thankful to the good Lord, Publishers Clearing house. If I do not win be thankful I had the opportunity to give it a good try.

  4. Barbara N. Kelly says:

    I would have the taxes, taken out in one lump sum.Then I. Wouldn’t. Have to worry. About it.

  5. Barbara N. Kelly says:

    I would pay off all debts, college. For the oldest Grandgirl and save for the youngest, ,when she’s. Ready for college, plus I’m. They’re. Grandma and have custody. Of both. I’m. Retired since 2003. And disabled. So I’d. Move to warm place.

  6. Elaine Smith says:

    I have been poor all my life I am the victim of surgery gone wrong and can no longer work…my husband is a disabled Vietnam veteran we live totally on Soc. SEC. disability…if I was to win..and that’s highly doubtful…if would pay off my house…pay off our cars..and all of our debts.. I would buy some new furniture.. becuz this is all garage sale specials over 30 yrs. Old……I would…invest some of the winnings get insurance..make repairs…and set up trust funds for all my kids and I’m in the 2nd part of my life my husband and I have sacrlficed all our lives we always put our kids first. .I think I would enjoy life with my husband a little…. do a few things we have always wanted to do but never could because of money and obligations…kids and bills have to come first.. yes I would have fun with it and I would help out our church who married our daughter…and I would make sure everybody especially our grand children had a nice Xmas we have never had any xtra money to do anything nice for anybody…it would be a gift from heaven to finally be able to buy our kids and grand kids some things they really need. And to get us things we desperately need. GOD bless.

  7. linda banks says:

    i would pay of my debt and buy a new home and a car help
    my family and my church.

  8. linda banks says:

    i would pay all my debt and buy a new home and gave to
    my family, and help my church.

  9. Janice Dodson says:

    IN THE STATE OF WISCONSIN WE DO NOT PAY TO GET IT!

  10. Janice Dodson says:

    My Credit card pay off and then may be a House
    Car I would need a Chauffeur!

  11. Sarah Akers Trial says:

    I would pay off my debts, my sister’s, and my brothers and hopefully after I pay taxes, be able to take care of them the rest of my life. Then the Angels would leave me feeling like I took care of them.

  12. Deborah Moussa says:

    You have noooo idea how this could change are lives.please understand I need a chance to live again!!!

  13. Bruce Hoekstra says:

    Communication is great, let’s us know where we are, hopefully in
    Tune enough to win, if not , keep up A positive atiitude, that’s easy enough, some day one will win, doesn’t have to be money, good
    Health, stay young, not old like me, but I’m still going, life I wonderful, married 64 years, no,problems, disdain my time in Korea, got ot of there alive 60 years ago, very fortunate, hope every one is doing well. Winning isn’t every thing, thanks a lot .

    Bruce Hoekstra

  14. sandra says:

    I would love to win.I have to major project that I would love to remodel my home and fix up my home church.It’ s a historical church.

  15. Linda Fike says:

    If I win this,it would be a life saver for my family and myself.i would pay off all debts and finally be able to breath every month,with no bills.

  16. Margie Valentino says:

    I am still keeping the Faith that I might be lucky enough to win something as great and life changing as this is. To give my family
    A better life and show them the gift of TRUELY giving would be
    The Best Thing In My Life , that could happen to me !!!! Good luck
    Everyone !

  17. Leslieann Holmes says:

    I prefer It To Be Mailed To Me In One Hole Lump Sum Between One – Two Days!I Need It To Have Everything Said, Finalized, Done And Said For Without Having To Deal With A Single Thing A Single Thing, Without Having To Have Any Trouble With Anything At All, Even Have The All Taxes Dealt With Before Hand I Receive It So I Dont Get Confused! I Also Need It To Be Ready To Use As Soon As I Recieve It And It’s In My Hand!
    I Am A Single Mature Women Turning 20 Years Olds In 3 1/2 Weeks On August 23 ! I Love My Young Brother And My Fmily Very Much Also I Very InVolved In My Families Lifes ! My Nan And Pap Basically Raised My Brother And I Along Side My Great Grandparnts, My Uncle Jessie (bio Mothers Brother), My Aunt Amiee ( Bio Mothers Sister) And My Uncle Jerry (My Aunt Ammiee’s Husband)!
    In Addition I Will Be Using It As Soon As I Receive It To Pay For All Of My Great GrandFathers Funineral And HeadStone Since Coasts! Also He Is On His Death Bed! The Doctors Say He Only Has This Week Left! Before He Passes Away , I Want to Drop Everything In 2 Days , Take Six Hour Move From To My Current Home At 2616 Parent Ave Windsor Ontario, Were I Lived At A Little Under Three Years! Also Can’t Stand, Am Moving Back To My Hometown To Live To Be With My Family, My Younger Brother And My Real Friends ! Also Take Absoultely All Of The Money Strain Off Of My Family That It Will Coast For The Feunaral And Grave Stone For My Great Grandfather !
    The Next Thing I Am Doing Is Relieving My Nan And Pap Of Never Having To Live In Apartment Ever Again And Giving Them They’re Forever Home That They Will Love And Never Have To Pay A Single Penny For !
    At The Same I Will Be Purchaseing My First And Forever Home With The Guidents Of My Nan , Aunt Amiee, My Cousin Ashlee Who Only 2 Weeks Younger Then Me!
    Thirdy I Will Be Opening Up A College Trust Fund For Brother Brandon That He Can Use Any Time With Any College Of His Choice!
    Also I Will Give Him A Certian Amount Of Money He Can Use On What Ever He Wants, Also I Am Going To Give Him A Choice Of Keep Living With Nan Or Me But I Won’t Tell Him He Can Choose For Himself He Already Knows He Has That Choice!
    Fourthly , I Am Going To Give My Uncle Some So He Can Get His Life Started!
    After That I Am Going To Take The Hole Family On Our First Real Vaccation Were We Will Be Going All Together!
    Finally, I Am Not Giving My Cats Up And Just Because I Need To Go Back Home And I Will Not Be Turning Back ! Gosh I Can Even Get The Dog I Have Always Wanted !
    All In The Time I Need a It To Be In

  18. Kathy Spence says:

    Winning This sweepstakes would be the greatest Blessing in my life besides coming to the Lord. I have had a difficult time since my ex left me for the younger version! I would like to get back on my feet and be able to live a better life in this world and help others who need help! Thank You for the chance to win!

  19. Cassandra says:

    I would give to the cancer society because my mother & cousin died from some sort of cancer so I would like to have a plaque in her honor. Thanks good luck everyone

  20. Scott T. Hoxie says:

    Yes you have to pay taxes in penna.

  21. Scott T. Hoxie says:

    Its going to a good family cause I’m disabled,I’ll use the money wisely.

  22. Scott T. Hoxie says:

    It would be very nice to have of this money. It will be going to a good family. Mine.I expecting my second grandchild. So we,ll use itwell. Thank You

  23. DAVID BRASWELL says:

    why I have to pay tax on winnings and what is lost in playing a lottery or any other entry that has cost to it cant be taken off of tax as loses…

  24. Tina Thomas says:

    I would have it taken all in one lump sum and have it done then no worries no more !

  25. James M Harris says:

    Don’t worry it’s all mine

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