Do you have to pay taxes on sweepstakes winnings? Yes, in the United States, any cash or prize winnings from sweepstakes are considered taxable income by the IRS. This means that if you win a sweepstakes, you must report the value of your winnings on your tax return. Do you have to pay taxes on sweepstakes prizes? The answer is yes, and it's important to keep in mind that the tax liability can vary based on the prize's value and your overall income. Always consult a tax professional for guidance on your specific situation.