How to use the sweepstakes prize tax calculator
- Enter the prizes you redeemed during the calendar year: cash at the amount paid, gift cards at their face value.
- Enter your Gold Coin purchases for the same year.
- Choose your federal tax bracket and set your state income tax rate.
You see the taxable prize income, the federal and state tax, and what is left after tax and after the money you spent on coins. There is no itemise option, because purchases are not subtracted as a standard deduction would be. The line below the results explains what would change if your activity were treated as gambling.
How prizes are taxed
- Prizes and awards are other income, taxed at your marginal rate along with the rest of your income.
- They go on your return even if you did not get a form. A $25 prize is income too.
- The 1099-MISC threshold only decides whether the site must send a form. It does not decide whether tax is due.
- State tax follows your state of residence.
Taxable prize income = prizes redeemed. Tax = taxable prize income × (federal rate + state rate). What is left = prizes − purchases − tax.
Worked example
In 2026 you redeem $1,200 in prizes and spent $800 on Gold Coins. You are in the 22% bracket and your state taxes at 4%.
- Taxable prize income: $1,200. Your purchases are not subtracted.
- Federal tax: $264. State tax: $48.
- You are left with $1,200 − $800 − $264 − $48 = $88.
If your activity were treated as gambling and you itemised, you could deduct 90% of $800, so only $480 would be taxable. That treatment is not settled for sweepstakes, so do not assume it. A tax professional can tell you what applies.
What to keep
- A log of every redemption: date, site, amount and method.
- A log of every Gold Coin purchase.
- Emails and screenshots of redemptions and any 1099-MISC.
- The site's rules on the value of coins, so your totals match the prize value.
Heads-up on withholding and big prizes
Completing KYC properly gives the site your taxpayer number, which avoids 24% backup withholding. Large redemptions can bring extra checks and paperwork, so if you expect a big prize, set money aside and ask about estimated payments. The redemption tracker shows how close you are to a payout, and the Sweeps Coins calculator estimates what your coins are worth before tax.
Other tax calculators
- Gambling winnings tax calculator: the general rules, including the 90% loss cap.
- Casino winnings tax calculator: slots, jackpots and table games.
- Sports betting tax calculator: sportsbook winnings and parlays.
- Prediction market tax calculator: event contracts on Kalshi and Polymarket.
Read the full guide to sweepstakes casino taxes and how to redeem Sweeps Coins.