My cokerewards.com sweepstakes tax???

Question

For those who have won in a sweepstakes before, how much usually was the tax for the prize???

I really need to know this ASAP, thanks so much!!!

Also, you have to downoad something and turn it in before getting your prize and it is avalaible online, but it came out really weird, what do i do about that???

please help!!!

Answer 1

Well, i'v gotten prizes and never payed tax.

I'v gotten key chains and other misc. stuff and never pay anything. =] Hope this helps!

Answer 2

Depends on the amout, how much are you talking? And if it is legit, it should be explained in the claim form as well.

Answer 3

Any prizes are taxed at the value reported to the IRS on the Form 1099 that you will receive from the promoter.  Prizes are taxed as ordinary income; list them on Line 21 of Form 1040.  

The actual tax you will pay will depend upon your total income so it's not possible to say what the tax might be without knowing your entire financial and tax situation.

About the only thing that the claim form may tell you is that you are responsible for any taxes.  It certainly won't give you any meaningful tax advice, other than possibly to consult with your tax adviser.

If you have a major win, you'll probably need to make an estimated tax payment using Form 1040-ES to avoid any penalties and interest for underpayment of estimated taxes.  Consult with a competent tax adviser if you have a major win, i.e anything over a couple of thousand dollars or so.

Answer 4

The cash or value of the prize you won is added to your total income.  The value is entered as "other income" on your tax return.  If you have no other income and the prize is worth less than $5,450 you will pay no tax.

If your income requires you to file, you may pay tax on your winnings based on your tax bracket.  If your income does not require you to file, your winnings are tax-free.

If you downloaded something and it came out strange, that is OK.  Just fill it out and send it in.  Keep a copy for your records.

If the value of your prize is over $600, Cokerewards will send you a tax document showing the value.  This document will also be sent to the IRS.