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Are sweepstakes ever real?
Do people really win sweepstakes? The answer is a resounding yes. People win prizes every day, from life-changing prizes like a new car or a new home, to fun prizes like tickets to a basketball game, a dinner out, or a brand new Apple iPad.
How much tax do you pay on sweepstakes winnings?
Cash prizes generally have 24% withheld for federal income taxes, although winners may owe more at tax time, depending on their other income. For noncash prizes, winners must pay taxes based on the value of the goods received.
How do I find local sweepstakes?
50+ Ways to Find Local Contests and Sweepstakes
- Find Local Contests in Your City’s News Media.
- Contests in Your Local Stores.
- Find Contests and Sweepstakes at Local Attractions.
- Find Local Contests at Your City’s Entertainment Venues.
- Finding Local Contests Online.
- Giveaways and Raffles from Local Organizations.
How do I report sweepstakes winnings?
Typically, tax on winnings, like sweepstakes or prize money, should be reported to you in Box 3 (other income) of IRS Form 1099-MISC. This includes winnings from sweepstakes when you did not make an effort to enter and also applies to merchandise won from a game show.
Do you have to pay for a sweepstakes?
If they call you, the law says they have to tell you that entering is free, what the prizes are and their value, the odds of winning, and how you’d redeem a prize. Sweepstakes mailings must say you don’t have to pay to participate. They also can’t claim you’re a winner unless you’ve actually won a prize.
Do you have to give your credit card number to win a prize?
There’s absolutely no reason to ever give your bank account or credit card number to claim any prize or sweepstakes. If they ask for this information, don’t give it.
What happens if you pay for a prize?
If you pay, you’ll lose your money and find out there is no prize. Who doesn’t dream of winning a lot of money or a big prize? That’s why scammers still use the promise of a prize to get your money or personal information. The good news is that there are ways to tell you’re dealing with a scam. Here are three signs of a prize scam:
What happens if you sign up for a contest?
If you sign up for a contest or a drawing, you’re likely to get more promotional mail, telemarketing calls, or spam. Contest promoters have to tell you certain things. If they call you, the law says they have to tell you that entering is free, what the prizes are and their value, the odds of winning, and how you’d redeem a prize.