Are sweepstakes taxable? Yes, sweepstakes winnings are considered taxable income by the Internal Revenue Service. When you win a sweepstakes, the entire amount of your prize must be reported on your tax return, regardless of whether you receive cash or non-cash prizes. The value of the prizes is typically determined based on the fair market value. Additionally, if your winnings exceed a certain threshold, the sponsoring organization may issue a Form 1099-MISC, which reports the income to both you and the IRS. It is essential to keep accurate records of your winnings to ensure compliance with tax regulations.
Void where prohibited by law. Must be 18 or older. Additional terms and conditions apply.
