Membership & Tax Coverage FAQs
Know How to Keep More of Your Sweepstakes Winnings
Get clear answers about membership, adding sweepstakes to your account, and how tax coverage works if you win.
Membership & Account Questions
Learn what your annual membership includes and how to prepare your account before a sweepstakes entry deadline.
Are there monthly membership fees?
No. Membership costs $25 annually; there is no monthly fee.
How many sweepstakes can I add to my account?
You can add as many as you like. To qualify for a claim, add each sweepstakes before its official entry deadline. See the Terms and Conditions for details.
Can I add my spouse or partner to my account?
Yes. For an additional $25, you can include one person on your account. They can benefit from coverage for your listed sweepstakes without adding those sweepstakes separately, subject to all terms and conditions.
When should I add a sweepstakes to my account?
Add it before the sweepstakes’ official entry deadline. Entries added after that deadline do not qualify for a claim under the membership terms.
Is there a separate charge for each sweepstakes I list?
No. Your annual membership lets you list an unlimited number of sweepstakes without a per-sweepstakes charge.
Does adding a partner give them a separate account?
No. The additional $25 option includes one spouse or partner on your account, allowing them to share the benefit of your listed sweepstakes under the applicable terms and conditions.
The Value of Planning Ahead
Five Ways a Big Win Can Become a Tax Decision
Why consider tax coverage before you win? A valuable prize can bring a substantial tax bill. If you win, you may face one of five paths: 1. Pay the taxes from your income or savings if you can afford to. 2. Borrow from a financial institution and pay interest on the loan. 3. Sell the prize before April 15 to raise the money for taxes. 4. Keep the prize without paying by April 15 and risk penalties and interest. 5. Make a smaller investment in Keep the Sweep membership so eligible prize taxes can be paid for you, subject to the Terms and Conditions.
Consider a $2.5 million grand prize with estimated taxes of about $875,000. If a sponsor adds cash intended to cover those taxes, the total prize value could rise to approximately $3.37 million, with an estimated $1.18 million owed in taxes. That added cash increases the taxable prize value. Keep the Sweep is designed to cover eligible prize taxes without inflating the grand prize itself, so members have another way to plan for the cost of winning.
What Your Coverage Can Include
A Clearer Way to Handle Prize Taxes
Direct IRS Payments
Eligible claim payments go directly to the IRS rather than to you, helping avoid adding the payment to your taxable income for that filing year.
Federal Income Tax Coverage
Membership coverage addresses federal income taxes on eligible prizes added to your account before their official entry deadlines, subject to the Terms and Conditions.
State Income Tax Coverage
When applicable, eligible prize claims can include state income taxes as provided in the membership Terms and Conditions.
Optional Property Tax Coverage
For an additional fee, you may add coverage for property taxes on an awarded prize, with payment made to the appropriate state agency.
Prize-Based Claim Amounts
Claim payouts are based on the value of the awarded prize, not on other income or capital gains you may have.
Official Property Appraisals
When optional property tax coverage applies, the payment amount is determined using the awarded property's official appraisal value.
How Can I Verify a Tax Payment?
Consult a professional tax advisor before submitting your claim form. Your filing circumstances can affect the amount owed on an awarded prize, and an advisor can help you assess the payment against your tax obligations. If you choose a cash option instead of the prize, you can still file an eligible claim. Cash options are often worth less than the prize's approximate retail value, but federal and possibly state income taxes may still apply.
Are Claim Payouts Taxable?
Payments made to you or on your behalf can themselves be considered taxable income. Keep the Sweep offers three- and five-year coverage options for taxes arising from claim payouts. Review the Terms and Conditions to understand how these options work and which coverage applies to your membership.
Take the Next Step Toward Keeping Your Winnings
Explore membership options and read the Terms and Conditions to see how eligible prize tax coverage works. Find out how Keep the Sweep can help you keep more of what you win.
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