Frequently Asked Questions
Q: Are there monthly fees for membership?
A: No. There is an annual ($25) membership fee.
Q: Are there limits to how many sweepstakes I can add to my account?
A: No. You can add as many sweepstakes to your account as you would like. Remember, in order to qualify for a claim you must add your sweepstakes to your account before their official entry deadline. Please read the Terms and Conditions for more information.
Q: Why should I become a member of keepthesweep?
A: This is the best and most important question one can ask. Winning a sweepstakes can become a financial disaster for recipients if they are not prepared to pay the taxes. One of the following facts will occur for a contestant who wins a mega prize:
- You are financially capable of paying the taxes based on your income.
- You will obtain a loan from a financial institute and pay interest.
- You will sell the prize before April 15th and pay the taxes.
- You will not sell the prize before April 15th and accumulate penalties and interest.
- You made a small investment to have keepthesweep pay the taxes for you.
If you have ever participated in any of the chat rooms and blogs of these sweepstakes, you know the biggest concern for winning mega prizes are the taxes. You hear questions like “Who can afford to pay the taxes?” or “Why don’t the sponsors give money for the taxes and make these prizes affordable?” In actuality, this will only make matters worse by increasing the amount of taxes already owed. For example, with a $2.5 million grand total prize, one can expect to pay approximately $875,000.00 in taxes. If a sponsor of a sweepstakes were to include this amount as part of the package, the grand total of the prize is now worth $3.37 million and the taxes owed are now estimated at $1.18 million. This cycle continues each time the value increases. Our service is designed to pay the taxes without increasing the value of the grand prize. We are an independent company and not affiliated with the sweepstakes sponsors. So, by paying the $875,000.00 for taxes we eliminate the amount being added as part of the grand total prize. We give you the best opportunity to keep your winnings without being forced to sell due to high taxes.
Q: Can I add my spouse/partner to my account?
A: Absolutely! For an additional ($25) fee you may include one person to your account. This is a great benefit, because it allows them to piggyback with your sweepstakes without any additional cost. All terms and conditions apply.
Q: Why do you pay directly to the Internal Revenue Service instead of the claimant?
A: Paying directly to the claimant will only compound the taxes owed during the filing year. This is also why we pay in the first month (January) of the filing year. Any taxes owed as a result of the payout will not be due until April 15th of the next filing year.
Q: How much taxes will keepthesweep pay?
A: As per the Terms and Conditions of membership, KeeptheSweep guarantees the amount of federal and/or state income taxes for awarded prizes listed on the accounts of our members. Claim payouts are based solely on the value of the prizes awarded and does not include any other capital gain by the claimant.
Not sure you live in a state that imposes an income tax? Click here to find out.
Q: Does keepthesweep pay state property taxes too?
A: Yes. As an option, property taxes may also be covered for an additional fee. This payment is made to the appropriate state agency and is determined by the official appraisal value of the property awarded.
Q: How will I know if the amount you paid is correct?
A: We strongly recommend consulting with a professional tax advisor before submitting your claim form. There are many variables involving how you file that will determine the correct amount payable to the Internal Revenue Service for your awarded prize.
Q: If I choose a cash option instead of the prize, will I still be eligible to file a claim?
A: Yes! Unfortunately, cash options are usually much lesser than the ARV of the prize awarded and you still would owe federal and possibly state income taxes regardless. The great news is that keepthesweep will still pay your taxes so you don’t have to.
Q: Will Keepthesweep pay taxes on the claim payouts?
A: Yes. Obviously any payments made to you or in your behalf would be considered taxable income by the Internal Revenue Service. We offer 3 and 5 years of tax coverage for taxes on claim payouts.