Do you have to pay Sweepstakes Taxes in the US?

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.

Taxes on Sweepstakes Winnings
Do You Pay Taxes on Sweepstakes Winnings?

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

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172 thoughts on “Do you have to pay Sweepstakes Taxes in the US?”

  1. PCH Win It All Giveaway #4900 on June 30th would be a dream come true. Thanks for the chance to Win It All.$2,000,000.00 And $10,000.00 A Month For Life and A new Car,Or the money for the value of car. I will look forward to seeing you all on June 30th.

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  3. gm its getting close to the time to find out who is the winner im claiming it for my self.and the first thing i would do is give money to the church for the lord is my keeper.next take care of the people that really need help.like the homeless.than do some thing for my self.and thanks once a gain.

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  4. If i win every bill will be paid off and i’ll be free

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  5. 2,000,000 plus more June 30 2015!!
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  6. I would pay all taxes first then pay off my bills and build a new house.

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  7. I would gladly and reluctantly ,pay any taxes due. I like many other Americans do not enjoy giving a portion to Uncle Sam, but we have to keep the government running . I, truly believe that ,if all the people, paid their fare share , we would ALL would gain. We now live in the best country in the world ,and we have to watch our politicians . God Bless America. P.Slane

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  8. Help my son and grandchildren

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  9. first i will give money to the church. take care of my family,do something for the nursing home resident.tnan i would do something for my self.if i won the pch 2million dollars+10,000.00 dollars a month for lif +a new car.thank u lord

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  11. I could and would help so many people in need and sure would do some fishing. :)

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