Welcome to our guide that tells you everything you need to know about SportsMillions taxes. Essential for anyone who wants to avoid getting in trouble with the Internal Revenue Service (IRS) when using this social sportsbook.
We found that, while SportsMillions won’t charge taxes, you will have to pay taxes both on a federal and state level if you redeem your Sweepstakes Coins for real prizes and when said prizes reach a value over $600. This guide will reveal how you can easily do this online and we’ll also give you some tips for keeping your sweepstakes tax affairs nicely organized.
Do you have to pay taxes on SportsMillions?
Yes, you will have to pay taxes if you manage to redeem your Sweepstakes Coins for over $600 in prizes over the tax year. Any less than that, and you won’t have to pay any taxes.
You’ll have to pay US federal income tax as well as tax on a state level. The federal tax rate is 24%, so if you redeemed your Sweepstakes Coins for a net gain of $1,000 in prizes that year, you’d have to pay $240 in federal taxes.
The state-level tax rate will vary according to where you are based, but it can vary from as much as 13% down to zero. Here’s a quick recap of what you are up against:
| Tax type | Tax rate |
| SportsMillions | None |
| US federal income tax | 24% |
| State-level tax | Between 13% and 0% |
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How do you pay taxes on SportsMillions?
SportsMillions is a little different from some sportsbooks in that it doesn’t provide a W-2G form that you usually can request to report your taxes to the IRS. Instead, the brand’s terms and conditions make it pretty clear that, ‘The payment and reporting of all taxes related to your use of the Service are your sole responsibility.’
Therefore, what you need to do is to report whatever prizes you’ve redeemed from any of your possible Sweepstakes Coins winnings on the 1040 Individual Income Tax Return. Here’s a quick step-by-step guide for how you do it:
- Add up the total amount of the value of prizes that you have redeemed from your Sweepstakes Coins at SportsMillions over the tax year.
- Go to the IRS site and download the 1040 tax form
- Navigate to the section on the form called Other Income
- Type in your total prize value that you redeemed with your Sweepstakes Coins here
- Submit your tax return
Tips for a stress-free way to plan paying your SportsMillions taxes
No one enjoys paying their SportsMillions taxes, but you can at least make it a little less stressful by following these simple tips:
The amount of tax you pay isn’t specific to individual redemptions of Sweepstakes Coins, but over the entire year. So be sure to add up the total amount and don’t try to offset it with any purchases of Gold Coins that you may have made. After all, you can only get those Sweepstakes Coins for free via deals like that
SportsMillions referral code
and so on.
It’s obviously essential that you keep a detailed record of every time that you redeemed Sweepstakes Coins for prizes from SportsMillions. This applies to the value of any gift cards as well as those cash prizes. So make a note of every time this happens and document it in a clear and organized manner.
Paying tax can sometimes be a bit of a headache, and this is why many people will hire accountants and tax advisors to help them with this task. While it might seem a little like overkill for reporting SportsMillions taxes, you can still consult the IRS Publication 525 (Taxable and Non-taxable Income) to get the basics on how to report sweepstakes prizes.
Remember that you will have to get all of your documentation and reports together before the IRS deadline of April 15. It’s probably best to do it well in advance of that date to make sure that you have got all of your facts and figures ready for submission.
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Pros and cons of paying your SportsMillions taxes
Of course, some people might resent the fact that they have to pay taxes on whatever prizes they’ve redeemed with their Sweepstakes Coins at the
SportsMillions sportsbook. So here is a quick reminder of the pros and cons of doing so:
Pros and Cons of Paying Taxes
- Stay on the right side of the law
- Fund essential services in your state
- Organize your financial affairs
- Paying taxes could create pressure for bettors
Conclusion - All you need to know about SportsMillions taxes
This guide has shown you that you will have to be careful to report any prizes that you redeem from your Sweepstakes Coins if they exceed $600 over the tax year. Failure to do this could land you in trouble with the IRS and your state’s tax authorities.
Thankfully, it’s a fairly simple matter to stay on top of as you’ll just need to keep a tally of the value of the prizes that you’ve redeemed with your Sweepstakes Coins and then you can simply report them online at the end of the tax year. So be sure to fire up that
SportsMillions app
and enjoy a stress-free way to enjoy social betting.
SportsMillions taxes FAQ
🏅 Does SportsMillions charge taxes?
No, SportsMillions will not charge any taxes for any prize redemptions that you make with any Sweepstakes Coins winnings. However, you may have to pay taxes to the IRS as part of your tax return.
📲 Is there any kind of SportsMillions taxes calculator?
You can simply use the calculator on your phone to figure out how much tax you need to pay on any prizes redeeming with Sweepstakes Coins at SportsMillions. The rate will be 24% for federal taxes, although that amount will vary on a state level.
🌴 Do I have to pay SportsMillions taxes in California?
Yes, you will as California is one of the
SportsMillions legal states, and therefore you will have to report any prize redemptions that you have made with your Sweepstakes Coins at the end of the tax year.
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