Sweepstakes: the Good, the Bad, and the UGLY
Hello everyone!!
I would like to send out a huge thank you to everyone who entered our giveaway! We gave away some really cute travel essentials. Congratulations to our winner, Beth H.! If you were unaware, head over to Facebook and like our page or subscribe to our mailing list to stay in the loop.
We will conduct another one once we reach 200 likes on FB. As one of the ways to earn entries, we asked you all to send us questions and feedback to improve the content of the blog. We are reading all of your suggestions and greatly appreciate all of them.
One of the questions was in reference to the fine print and unexpected expenses that may be associated with redeeming sweepstakes prizes.
The Good
As most of you know, I’ve won a few “all-expense” paid trips by entering sweepstakes. It's a great opportunity to travel for those of us who have to be a little more resourceful with our everyday spending. The chances are slim but is really worth it in the odd chance that you actually win.
The Bad
An influx of emails is the main reason why many people do not take the time to enter sweepstakes. To enter most sweepstakes, you usually have to opt-in to receive newsletters and promotional emails from the sponsoring company. To me that seems to be a fair trade-off when you look at the potential outcome. But I have a resolution that will help with that.
To regain control of your inbox, I suggest that you set up filters. I have a gmail account. All of the promotional emails automatically go to a "Promotions" folder. I have also set up a sweepstakes folder. I've added a filter to catch all of the emails that contain words like "congratulations," "enter to win," "enter for a chance," you get the picture. I also check my inbox EVERY DAY. I don't allow my unread messages to reach the thousands.
The Ugly
Taxes. Some of you may be asking “what could be so bad about winning a free trip.” Unfortunately, in a country where capitalism is king, free doesn’t always mean free. So let’s talk about it. Every prize has a monetary value. If the monetary value exceeds $1,100 it has to be counted as income. During tax season, you will receive a tax document to submit as you would a W-2. Depending on how much the prize actually is, you will have to pay taxes according to the tax bracket in which you fall. For most of us, it won't make much of a difference. But if you have significant winnings, you could be looking at paying a large portion of the money back in taxes. This won't affect most of us because the winning really aren't enough to push us to the next tax bracket or enough to change our lives, it's just something to be aware of.
Tips
Always read the official rules.
After you've won and redeemed your prize, take a copy of confirmation details with you.
If there isn’t a physical prize, make sure you have contact information for a representative from the sponsoring party.
Make sure you know what all is covered. (i.e. accommodations, flights, food)
Always have cash or a credit card for incidentals. Some prizes include a gift card or cover flights but you are responsible for transportation to/from the airport and around town for the duration of your stay (Uber, Lyft, public transportation)
I hope this helps. Please let me know if you have any additional questions. Have you won a trip? If so, let us know in the comments below.
Happy Sweepstaking!!
Demetria