
We think it’s high time we had an honest chat about SportsMillions taxes. Because like it or not, you may need to pay taxes to the IRS if you manage to redeem sweepstakes prizes – including cash and gift cards.
Here, we should stress that SportsMillions is 100% free to use with no purchase required. It’s not the brand asking for a share of your sweepstakes prizes, but your local tax authority. So, to clear up any confusion, we’re taking a look at the concept of paying taxes on SportsMillions sweepstakes, along with steps on how to do it.
We won’t beat around the bush: yes, taxes may apply at SportsMillions, and it’s up to you to pay them.
We know that might not be the news you wanted to hear. But the truth of the matter is that the IRS considers sweepstakes prizes – including cash prizes and gift cards – taxable income, so you’ll have to expect possible payments to your local tax authority if you want to use sites like SportsMillions.
No, SportsMillions has nothing to do with any taxes you might owe to the IRS, a point it makes crystal clear in its general terms of service. SportsMillions taxes are not levied by the brand but by the federal powers that be, so don’t for a second think that the site is imposing charges just to spite its members. And for those wondering about SportsMillions legal states, the platform operates in full compliance with the regulations of each state where it is available.
As a matter of fact, using SportsMillions is 100% free, with no Gold Coin bundle purchases necessary. You can make optional Gold Coin bundle purchases in the official SportsMillions store if you wish, but otherwise, you can use the service without reaching for your wallet.
If you’ve read our guide on how do SportsMillions Coins work, you’ll know that Sweeps Coins are the virtual currency you need when you want to request a prize redemption. But by redeeming SC for cash prizes and gift cards at SportsMillions, you are stepping into tax-paying territory, with the IRS levying a fee on all taxable income you collect through SportsMillions sweepstakes.
We get that might sound a little scary. But so long as you follow our advice and understand that taxes are coming down the pipe, you’ll be in a position to pay what you owe without any hiccups. It’s crucial that you understand the concept of SportsMillions age requirements – how long you’ve been playing can often times affect how your taxes are calculated, especially as you claim larger amounts over time.
With that in mind, here are a few steps to follow which should make it simpler to pay tax at SportsMillions.
Total prizes to declare | Reporting document |
---|---|
Under $600 | “Other Income” on Line 8 of IRS Form 1040 |
Over $600 | Bettors need to fill in a W-2G form |
We get that news of potential taxes might be off-putting; you may even be asking yourself, is SportsMillions safe? So, to assure you that using the site is fun, here are some of the pros and cons you can expect.
If we were to hazard a guess, we’d wager that well over half of the people reading this guide to SportsMillions taxes had no idea that taxes apply to sweepstakes prizes. There is very little concrete information out there about the tax implications of claiming cash and gift cards on sweepstakes gaming sites, so we can definitely see why news of potential taxes might come as a shock as a new SportsMillions member.
What we would stress, though, is that it’s 100% free to make sportspicks at SportsMillions, with no taxes or charges levied by the brand itself. You would need to pay tax on cash and gift cards claimed at any equivalent sweepstakes gaming site, so don’t be put off using this particular brand.
It’s worth remembering, too, that if you don’t claim sweepstakes prizes at SportsMillions, you won’t pay any tax at all. Stick with using Gold Coins rather than Sweeps Coins on the site, and you can enjoy a 100% free, fun, and tax-free experience. Just a thought.
You may need to pay tax on cash and gift cards you claim at SportsMillions, as the IRS considers this taxable income. Of course, this all depends on your personal circumstances.
Yes, it’s 100% free to use with no purchase necessary. The very reason that SportsMillions app is permitted in the USA is that it operates as a free-to-use sweepstakes gaming site, so you can access its sports predictor and casino games with no upfront payment or deposit.
No. Place your bets by using Gold Coins only and you’ll never need to worry about sending a share to the IRS, since Gold Coins cannot be redeemed for real prizes and are only meant to be used for fun. If you’ve used a SportsMillions referral code, the same rule applies to any Gold Coin bonuses you may have received.