Frequently Asked Questions
1: Are there monthly fees for membership?
No. There is an annual ($25) membership fee.
2: Are there limits to how many sweepstakes or raffles I can add to my account?
No. For only ($10) each you can add as many sweepstakes and/or raffles to your account
as you would like. Remember, in order to qualify for a claim you must add your sweepstakes
and/or raffles to your account before their official deadline expires. Please read the
Terms and
Conditions for more information.
3: Why should I become a member of keepthesweep?
This is the best and most important question one can ask. Winning a sweepstakes or raffle
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 recipient 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 $10 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.
4: Can I add my spouse/partner to my account?
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/raffles without any
additional cost. All terms and conditions apply.
5: Why do you pay directly to the Internal Revenue Service instead of the claimant?
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.
6: How much taxes will keepthesweep pay?
KeeptheSweep guarantees the full amount of federal and/or state income taxes paid
for awarded prizes listed on the accounts of our members. Tax 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.
7: Does keepthesweep pay state property taxes too?
Yes. As an option, property taxes may also be covered for an additional ($5) fee. This is a
one-time payment to the state for the year which the prize was awarded.
8: How will I know if the amount you paid is correct?
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.
