Yes—depending on how much you redeem, your prizes from Pickem may be considered taxable income under U.S. law.
Here’s what you need to know:
Tax responsibility
All prizes redeemed from Sweepstakes Coins (SC) that are converted into U.S. Dollars (USD) may be subject to federal and state taxes.
It is your responsibility as a player to report and pay any taxes owed.
Tax forms
If your total redemptions meet or exceed the IRS reporting threshold in a calendar year (currently $600 or more), Pickem is required to collect your taxpayer information (via W-9 form) and issue you a 1099-MISC form.
This form will also be submitted to the IRS.
Keeping track
You can view your redemption history at any time in your Transaction Log under Account Settings.
We recommend keeping your own records for tax filing purposes.
Summary:
Yes, redemptions may be taxable.
If you redeem $600+ in a year, Pickem will provide a 1099-MISC form.
You are responsible for reporting your earnings and paying any taxes owed.
Need help?
If you have questions about your tax information or need a copy of your forms, contact Pickem Support. For specific tax advice, please consult a tax professional.