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April 18, 2016

Why You May Have To Decline A Sweepstakes Prize

As strange as it might sound, there are some instances where you may need to turn down a sweepstakes prize. You might not picture that as being a possibility when you are entering because you are too caught up in the idea of winning. You might even think that you don’t have a prayer in winning, so you enter a sweepstakes without knowing the full details of the prize.

In reality, people do win those sweepstakes. There is a possibility you might be that one person who does. Are you prepared to accept the prize if you are chosen as the winner?

Ideally, you do not want to put yourself in a situation where you are forced to decline a prize. It is a huge bummer for everyone involved when this happens. You might even feel like you have wasted that once in a lifetime opportunity. Are you still curious why you would ever need to turn down a prize from a sweepstakes victory? Here are a few of the reasons you might not be able to accept your winnings as well as some tips for how to avoid them.

Extra Fees Along The Way

Just because you win a sweepstakes does not mean you always get away without paying a dime. There may be additional fees required for some of the services included. For example, you might win a free cruise, but you still have to pay for the meals and the hotel at your stay-over destination.
You need to read the fine print of the sweepstakes before entering to avoid this unwanted scenario. Many sweepstakes only pay for partial services as a way to bring new customers into their business. You arestill saving a lot of money overall, but if you are not prepared for the additional expenses, then you won’t be able to fully enjoy the prize.

Tax Payments

Another way you may not be able to afford the victory is due to taxes. This depends on what country you live in at the time of entering the sweepstakes. Some countries do not require citizens to pay any taxes ontheir prizes. America, unfortunately, is not one of those countries. Any prize you win that is valued above $600 will require paying taxes.

The taxes for the prize are determined by the actual retail value (ARV) of the prize and your income bracket. If you are in a low-income bracket, you might find that you can’t actually afford the taxesrequired to receive the prize. In this case, you will have to decline the prize.

To avoid this, you need to find the ARV of the prize and determine the required tax payments needed to receive the winnings. If you cannot afford the tax payments, then simply do not enter the sweepstakes.Sometimes, the ARV listed by the sweepstakes sponsor is not accurate. You can actually dispute the ARV if you believe this is the case.

Your Schedule Isn’t Open

Many people enter sweepstakes without reading the details because they don’t think they will actually win. They later find out they have won but the trip, vacation or cruise is taking place during a time they do not have available. They are forced to turn down the prize because they didn’t read the rules and plan ahead. As with the first problem, this can be avoided by carefully reading the rules and fine print of the sweepstakes. If you know that you won’t be able to get the time off from work, then do not enter the sweepstakes. Once you do enter try to plan ahead and keep the date available just in case you do win.

It’s clear that one of the biggest problems participants have with sweepstakes is clearly reading the rules, fine print and values of the prizes. By carefully examining the sweepstakes before entering you can decide whether it is the right thing for you to do. This will keep you from needing to decline the prize should you ever win.

Brad Cooper is a successful business operator and freelance writer. He shares his tips and advice for entering sweepstakes on his website, WinningSweepstakesSecrets.com