Intel Rig Challenge: Winning, Taxes, and Dates

[MegamanXGold]

I started voting in the Intel Rig Challenge on Twitter, and since LinusTechTips is one of the influencers chosen to be a host/judge, I hope this is the right place for this.

 

It didn't seem very clear to me how you're supposed to find out whether you win, and I had the impression you had to be at PAX to claim your prize.  So I skimmed through the rules and found out.  But just in case anyone else is curious but doesn't want to look through it, here's what I found.

If someone wins either an Intel Rig or an Oculus Rift, how do they find out they are a winner?

You don't have to be at PAX.
 

Keep an eye on your Twitter on the draw dates and shortly thereafter. Intel will inform you that you have won with a tweet, but you might receive that tweet from @quangoinc. I reasonably suspect they'll send out the tweet upon confirmation of the draw, but this seems to be at their discretion as it is not mentioned in the terms. After the tweet you will have two days to follow them, if you haven't already, so they can send you a direct message. Then you'll have another two days to give them your first & last names, full mailing address, eMail address, and date of birth.

 

If you win the Grand Prize, you'll be expected to fill out a tax form for the IRS, even if you're a resident of Canada. Canadians also have to answer a "mathematical skill-testing question". Be aware that the IRS form will ask for your SSN (US) or SIN (Canada). You will also have to sign some kind of form saying you are eligible to receive the prize, and probably give them permission to announce you as a winner. You will have 7 days to complete this part of the process. The language in the terms implies this can all be done electronically.

 

The terms point out that you are only a "potential winner" until proven eligible.

 

A note on Taxes

Clarification for the following portion would be strongly appreciated.

It should be noted that if the value of your prize is being reported to the IRS for Intel's taxes it may be considered as some form of income on your annual taxes, or you may have to pay tax upon delivery, as the terms specify that "all applicable taxes on the prize are the sole responsibility of the Grand Prize Winner".  For example, if I won the Grand Prize, I might be stuck paying $619.20 for the computer and have to report $5160 as income on my annual income tax.  This might push me into another tax bracket, and cause me to pay a lot more taxes for the whole year.  With that in mind I really hope to win an Oculus Rift, but I might not be able to afford "winning" a PC.

 

Dates related to the challenge

Oculus Rift drawing dates take place 5 days after the entry period ends.  Two winners will be selected each and two draw dates remain (4 Rifts still available to be won as of this posting).
These dates are May 14th, and May 28th.

 

Voting ends June 8th, and on June 11th Five Grand Prize Winners will be selected.

 

[Sickshooter0]

Taxes, as it relates to the US, you will receive a 1099-MISC from the sponsor with the reported value of the prize which is considered taxable income. That exact tax however is determined by your tax bracket (gross income). Here's an article for the tax brackets for 2018 since it has changed with the recent tax cuts (https://www.forbes.com/sites/robertberger/2017/12/17/the-new-2018-federal-income-tax-brackets-rates/#6c6b1252292a).

[Canada EH]

12 hours ago, MegamanXGold said:

A note on Taxes

In the USA, you pay taxes on prizes. In Canada you pay no taxes, even on Lottery prizes.

[MegamanXGold]

On 5/2/2018 at 1:03 AM, Canada EH said:

In the USA, you pay taxes on prizes. In Canada you pay no taxes, even on Lottery prizes.

Oh.  Well.  I hope I win a PC then!

 

Thank you Canada EH, I was under the impression that, even if it was delivered as a gift, it would still have to be reported with a value over $2000 and I'd end up paying GST at the door, at least.  But if that's not the case for Canadians then I really hope I win!

I hope no US citizens get bankrupted from winning a PC though.  Best of luck to everyone!

[Canada EH]

3 minutes ago, MegamanXGold said:

Oh.  Well.  I hope I win a PC then!

 

Thank you Canada EH, I was under the impression that, even if it was delivered as a gift, it would still have to be reported with a value over $2000 and I'd end up paying GST at the door, at least.  But if that's not the case for Canadians then I really hope I win!

I hope no US citizens get bankrupted from winning a PC though.  Best of luck to everyone!

Well as far as I know, even the contestants on the game shows in the USA have to pay taxes on the prizes they win. Now I've always wondered if the case is you have to pay the taxes up front in order to receive the prizes, say Price is Right $100,000 whatever prize. I know for lottery they take taxes off only if you do it. Lots of contestants get into tax trouble that way.

 

For Canada, the gift thing I dont know too much about. I know for certain social programs you have to declare. But the tax man, no you dont. Pay GST on a prize that is delivered, well you never bought nothing, but maybe it is insured as a postage item.