Yotta Savings | Taxes on Prize Winnings

If you win prize money, how is it taxed and should you be concerned!? Yotta Savings is the hottest new savings account that thoroughly gamifies the otherwise extraordinarily boring act of saving money.

We'll both get 100 tickets to win up to $10,000,000 when you download Yotta Savings and make your first deposit! Just sign up with code BRENDAN4 or tap this link: https://withyotta.page.link/rXnbeHREFhNyGP3t9

Yotta v. Savings accounts:
What about any "normal" savings account interest that is paid to people like you and me? Well, first off Yotta Savings doesn't pay traditional "interest". The base rate of 0.20% is paid in a "savings bonus" and on top of that, you can win prizes by matching numbers in the weekly drawing. (Yes, it is extremely reminiscent of the lottery.) Overall, we "should" be able to make more money in combined "interest" by combining both the savings bonus and the prizes than in other savings accounts. In those typical savings accounts, interest is reported on form 1099-INT and is treated essentially the same as your normal income.

When you win prize money from a sweepstake like Yotta (yes, it is technically a sweepstake), is that income treated differently and more harshly when tax time comes? You've probably heard the stories that I have where a prize winner either has to reject the prize altogether or for some reason pay a large sum of cash to be able to accept the prize.

As it turns out, this situation where someone has to have cash on hand to accept a prize is when the prize is something worth a considerable amount of money, and that cash is to cover the taxes for it. The amount is based on the "fair market value" of the prize itself. So all those people winning cars on the Price is Right are likely get a bit of a surprise once the show is over.

When someone wins money in something like a game show or a Yotta Savings prize, this tax money paid upfront is not necessary. Instead, that money is treated like normal income. It is reported on a 1099-MISC. This all came as a surprise to me since I assumed that prize money was somehow taxed more heavily than normal income!

Here's to hoping that you and I have to worry about how we will handle all the additional income we win by using Yotta. Good luck!

Don't download the app unless this is something you really want to do. But if you DO, use my link and we will both get 100 tickets!
https://withyotta.page.link/rXnbeHREFhNyGP3t9

Timestamps:
0:00 Intro
0:10 What about taxes
0:33 About Yotta
1:44 Official Sweepstakes Rules
3:58 Savings account interest taxes
5:12 Taxes on prize winnings
7:53 The Tesla we all hope to win
9:04 See ya

#BrendanFitnessandMoney #BFAM #SweatandSpreadsheets
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Disclaimer: Any financial or investing-related topics discussed on this channel are not from a professional investment advisor and are not financial advice for you. This is for entertainment purposes only.

Видео Yotta Savings | Taxes on Prize Winnings канала Brendan Fitness and Money