Max The Vax But Don’t Forget The Tax
States offering prizes to incentivize people to get the COVID-19 vaccine.
In California – get vaccinated, get rewarded. Are you already vaccinated or about to be? Great! You’ll have a chance at winning $50,000 or a grand prize of $1.5 million! Not yet vaccinated against COVID-19? Listen up! Get vaccinated as soon as possible to be eligible for a $50 incentive card and other cash prizes.
Ten winners will be selected by the California Department Of Public Health (“CDPH”) on June 15, 2021 to receive $1.5 million each — prizes totaling $15 million! All Californians who have had at least one COVID-19 dose will automatically be entered.
You’re eligible to win $1.5 million if you:
- Live in California,
- Are aged 12 and older, and
- Have received at least a first dose of your COVID-19 vaccine.
Prize money will be paid after the winner has completed their vaccination series. Incarcerated persons and persons living outside of California are not eligible. Click here for terms and conditions.
Taxability of Prizes
IRC Sec. 74(a) requires the inclusion in gross income of all amounts received as prizes and awards. Prizes and awards that are generally includible in gross income include (but are not limited to): (1) amounts received from radio and television giveaway shows; (2) door prizes; and (3) awards in contests of all types. If the prize or award consists of goods or services rather than money, the fair market value of the goods or services is the amount includible in gross income (Reg. Sec. 1.74-1(a)(2)).
Considering the foregoing CDPH requires prize winners giving consent to disclose the winner’s information from CDPH’s vaccine registry for purposes including, but not limited to, payment and tax withholding. Also, winnings are subject to any public debts of the winner of which the State is aware (e.g., taxes, child support, restitution payments).
What Should You Do?
If you are lucky enough to win, keep in mind that at the Law Offices Of Jeffrey B. Kahn, P.C. we are always thinking of ways that our clients can save on taxes. If you are selected for an audit, stand up to the IRS by getting representation. Tax problems are usually a serious matter and must be handled appropriately so it’s important to that you’ve hired the best lawyer for your particular situation. The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County (Irvine), San Francisco Bay Area (including San Jose and Walnut Creek) and elsewhere in California are highly skilled in handling tax matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income. Additionally, if you are involved in the cannabis industry, check out Cannabis Tax Attorney. Also, if you are involved in crypto currency, check out what a Bitcoin tax attorney can do for you.