Prizes You Win, Even From Radio Stations, Aren’t Free
I began thinking about the people who usually win prizes from radio stations. We have our loyal listeners who win prizes, and we have listeners who surf the radio stations in the area and try to win as many prizes as they can. What these people may be forgetting is that their prizes, once they reach a total value of $600 or more, will have to be accounted for to the Internal Revenue Service. In other words, if you have won prizes that total a value of $600 or more, you will be responsible for paying taxes on those prizes to the I.R.S.
At all Townsquare Media stations, we encourage our listeners to take part in winning prizes from us, but we also encourage them to wait 30 days before winning another prize. That gives other listeners chances to win prizes, plus it helps prevent listeners from reaching that $600 threshold. We don't want you to have to pay taxes, but if you need to because of your winnings, then you'll be receiving tax paperwork from us. You have to pay your taxes as everyone else does.
My advice is, if you're someone who wins prizes often, watch how much you win and the value of those prizes. Otherwise, you'll have to come up with money at the end of the year and "pay the piper," or in this case the I.R.S.