Yes, winning a prize, no matter how small, is a moment of joy! We understand your elation on winning a sweepstake. But don’t let your excitement cloud your sensibilities. You still have to pay attention to details, which includes taxes.
Now you might feel that it’s a bit unfair to pay tax on a sweepstake prize. However, rules are rules, and one of the rules of the US government is to treat prize money as ordinary income subject to taxation. You cannot escape taxes on sweepstake winnings, whether it’s HGTV or PCH sweepstakes- tax rules are applicable on all wins without exception.