Taxes on Prizes and Awards
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Written by Sleeper HQ
Updated over a week ago

The Internal Revenue Service (“IRS”) requires companies to report an individual's cumulative prizes and awards of $600 or more over the course of a calendar year as Other Income to the individual via IRS Form 1099-MISC. The threshold is based on when prizes and awards are credited to your Sleeper Wallet. Credits that can only be used in-app do not count towards the $600 threshold, but 100% of any prizes from contests entered with such credits do.

In order to comply with its tax reporting obligations, Sleeper will ask you to provide your current address and Social Security Number, and will use that information in its filings to the IRS and relevant state tax authorities. The necessary information may also be shared with third-party vendors, solely to facilitate the production and dissemination of necessary tax forms. If you fail to provide us with the information we need to file a Form 1099-MISC, we are obligated to remit 24% of what would otherwise have been reported on the form to the IRS, and we will deduct that amount from the balance in your Sleeper Wallet.

We will request your permission to send you your 1099-MISC for any given year electronically, and you can expect to receive it by February 15 of the subsequent year. You are responsible for paying any taxes in respect of the Other Income reported on your form 1099-MISC. 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.

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