Sweepstakes & Taxes

[heathie17ppg]

Hi all! I'm new to sweepstaking this year (2022) so I don't know much about taxes on wins. Can someone explain it to me? Do you only owe taxes if a single win is over $600? Only if you have to sign an affidavit? Or if the cumulation of all wins in 2022 is over $600? What is the estimated tax burden one can expect? Thanks so much for any info!!

 

[jvictor]

If we're speaking about federal taxes then you are correct. If the total is over $599 it would typically be up to the company to send you a 1099 tax form. However if you win let's say 10 prizes worth $100 each from different contests and companies then there will be no tax form sent. I won a $299 cooler and a $299 leather bag in separate contests but both from Coors Molson. Thankfully the combined number was just under the threshold.