Knowing How To Pay Your Sweepstakes Taxes

Congratulations, you’ve won the sweepstakes. Please be sure to pay your taxes on your winning’s as shown on line 12 of the form enclosed. Have you ever received a notification like this? I hope not, it could be fraudulent. Many scams are out there and take advantage of people that don’t know when or how to pay taxes upon a sweepstakes winning. Here is what you need to know. Paying Taxes; How to? If you’re the lucky winner of a sweepstakes, you may be notified but never receive your winnings. A letter is sent out demanding tax payments prior to your being sent your winnings. Never pay this tax. You pay the IRS not the sweepstakes itself. Read more on how to pay your sweepstakes taxes.

1099 Form

In order to pay the IRS you’ll need a 1099 form attached to your annual taxes. You’ll put in the value of your winnings (if it is a dollar amount it’s fairly easy but if it’s a gift you’ll need to find out the fair market value-FMV of the item). You will then send this form in with your taxes. All of the instructions are in the tax booklet.

Be Aware

It’s important to be aware that your winnings, depending upon what they are, may place you in a higher tax bracket. Make sure to get a Fair Market Value or FMV on your gift item and keep a copy of how you got said value (online, in person, through a pawn shop etc.).

Remember

Keep a copy of all of your winnings each year. Itemize your tax return if you have more than one winning item. Consider having a professional prepare your taxes if they seem overwhelming. Have a professional double check your return to ensure that everything is completed accurately on your forms. Always pay any taxes that are due.

Paying your sweepstakes taxes isn’t difficult if you follow these tips.




19 Responses to “Knowing How To Pay Your Sweepstakes Taxes”

  1. Guillermo Gonzalez says:

    Claiming win it all

  2. Cynthia Pailing says:

    I would love to win grandest prize and contact I R S but still use H & R Block like every year and pay end of year taxes!Wouldn’t mind ,we always pay taxes,hopefully they go where need be!I would like to include a prize number in my letter issued to me but uncertain if got sent in to P.C.H. and enter it now if IMay. #472058081718. If wrong place tell me where to enter it back please!

  3. Lorena Gonzalez says:

    I WouldBe Happy First Of All Thank God Then Get My Winnings Lump Sum Pay Taxses.

  4. William Roberts Jr. says:

    Pch, the day that I win I will pay my taxes immediately to IRS.and Raleigh North Carolina. Immediately.

  5. teaondra johnson says:

    Praying that God finds favor only if it’s his will . It could help a lot of people to win

  6. Kurt habrock says:

    Win it all plus 10,000,00 a week for life

  7. Kurt habrock says:

    Yes I would pay the taxes on my winnings if I was to win.

  8. Robbie J Clark says:

    Yes I would to collect on my sweepstakes in one lump sum fro my Gwy No. 4900 for $5000.00 a week for Forever

  9. Stephanie morley says:

    Pch bonus entry gateway 4950

  10. benny whitis says:

    win win win

  11. Robert Keuser says:

    even after paying all the taxes I will still move to Hawaii

  12. medrdo florez says:

    Yes i do ones i now the total mout dallors i have. Won i need to file 1099 tax form to the irs .

  13. William Roberts Jr. says:

    If I’m allowed to win this great opportunity of becoming a Pch Super Prize Millionaire, one of the first things I’m going to do is contact the IRS.

  14. wYVONNE MCLELLAND says:

    hello, would love to win this but I am not a photo person but if I have time I will write a note about life in wortham–it’s different.

  15. dixie c wilson says:

    This has been very helpful, as I have been wondering about the taxes. My husband and I figure you might end up with $1 million by the time you paid taxes on the “WIN IT ALL” Sweepstakes. But who complaining, surely not us if we would be so lucky to win.

  16. Tina Thomas says:

    I would put it in IRA’s and everything you can imagine out there so Uncle Sam would not take his 3/4 ths just about you are left the same way broke .

  17. Michael Burkett says:

    I just like to know when I can start collecting my money

  18. Michael Burkett says:

    My text person would take care of all Texas
    If we knew the total amount

  19. Michael Burkett says:

    Yes I like to collect on my sweet steaks winnings
    So I like to hear back from you

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