New Disney World 50th anniversary sweep has this in the rules:
Non-residents of California are subject to the California withholding tax of 7% of the Prize value, when applicable. Grand Prize Winner may be required to provide to Sponsor an amount to cover the balance of all applicable withholding taxes at the normal rates required by law (notwithstanding any tax treaties that may provide for lower rates of tax withholding, including exemption from withholding with the satisfaction of qualification requirements) prior to being awarded the Grand Prize, and failure to do so will result in disqualification.
I've never seen this in rules before - that you would have to pay taxes to the sponsor of the sweepstakes, instead of to the government...
And I don't understand the whole thing of paying the state of California taxes when you don't live there.
Has anyone had to do this on a big win??
Non-residents of California are subject to the California withholding tax of 7% of the Prize value, when applicable. Grand Prize Winner may be required to provide to Sponsor an amount to cover the balance of all applicable withholding taxes at the normal rates required by law (notwithstanding any tax treaties that may provide for lower rates of tax withholding, including exemption from withholding with the satisfaction of qualification requirements) prior to being awarded the Grand Prize, and failure to do so will result in disqualification.
I've never seen this in rules before - that you would have to pay taxes to the sponsor of the sweepstakes, instead of to the government...
And I don't understand the whole thing of paying the state of California taxes when you don't live there.
Has anyone had to do this on a big win??