The Internal Revenue Service (“IRS”) requires companies to report an individual’s cumulative prizes and awards totaling $600 or more over the course of a calendar year as Other Income using IRS Form 1099-MISC.
This $600 threshold is determined based on when prizes and awards are credited to your Sleeper Balance.
Credits that can only be used in-app do not count toward the $600 reporting threshold.
However, 100% of any prizes won from contests entered using those credits do count toward the threshold.
Required Tax Information
To comply with federal and state tax reporting obligations, Sleeper may request the following information from you:
Your current mailing address
Your Social Security Number (SSN)
This information is used solely for required filings with the IRS and applicable state tax authorities. In some cases, the information may be shared with trusted third-party vendors for the limited purpose of preparing and delivering required tax forms.
If you do not provide the required information to allow Sleeper to file a Form 1099-MISC, Sleeper is required to withhold 24% (backup withholding) of the reportable amount and remit it to the IRS. This amount will be deducted directly from your Sleeper balance.
Receiving Your 1099-MISC
If applicable, Sleeper will request your consent to deliver your Form 1099-MISC electronically.
Forms are typically made available by February 15 of the year following the applicable tax year.
You are responsible for reporting and paying any taxes associated with the Other Income shown on your Form 1099-MISC.
Important Disclaimer
Sleeper does not provide tax advice; you should consult with a tax professional as to how the receipt of a 1099-MISC impacts your personal tax situation.
Nothing herein or otherwise communicated by Sleeper by any means should be construed as tax advice.