I have recently gotten into sweepstakes more consistently as a serious hobby. Initially, I was entering all kinds of sweepstakes that sounded interesting, but when I learned the tax implications, I started only entering sweepstakes with cash prizes that were big enough that I'd be able to comfortably cover the taxes. Money has been tight lately and I don't want to get myself into a mess. The only downside to sticking to the cash-only sweeps is that they are fewer and far between compared to the ones for electronics, trips, concert tickets, and gift cards. Although I am excited about sweepstakes and all of the cool things you can win, I can't afford to send my tax bill through the roof for a bunch of knick-knacks or frivolous stuff even if it is fun to win.
Do you guys have any tips or tricks that you use to either reduce the tax burden or make it more manageable? Also, for those of you who win trips, cars, high-value gift cards, etc often, do you feel like it's all worth it even with the tax element of it? I live in the LA area and there are so many cool local sweeps that I want to enter, but I need to get clarity on this tax stuff first before I go all in. Thanks!
Do you guys have any tips or tricks that you use to either reduce the tax burden or make it more manageable? Also, for those of you who win trips, cars, high-value gift cards, etc often, do you feel like it's all worth it even with the tax element of it? I live in the LA area and there are so many cool local sweeps that I want to enter, but I need to get clarity on this tax stuff first before I go all in. Thanks!
