Wednesday, January 8, 2014

Do you pay taxes on sweepstakes?

Do you pay taxes on sweepstakes?
In the United States, you pay taxes on your income. Lottery and sweepstakes winnings are considered income, even if you win a car or a boat and not money, so yes, you are expected to pay taxes on sweepstakes.

Much of the time when people win a physical item such as a car, boat, or house, they need to immediately sell the item in order to pay the income taxes based on the fair-market value of the item.

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