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Xbox Fan Wins 'Game Pass For Life', But Shockingly Declines The Prize (due to taxes)

submitted by dosvydanya_freedomz to gaming 2 yearsApr 16, 2023 09:37:00 ago (+4/-0)     (www.purexbox.com)

https://www.purexbox.com/news/2023/04/xbox-fan-wins-game-pass-for-life-but-shockingly-declines-the-prize

Every now and again, we see a competition cropping up as part of Microsoft Rewards that allows the winner to claim a "Lifetime Membership" to Xbox Game Pass - a prize which ultimately lasts for around 40 years.

Earlier this week, a recent winner of this prize took to the Microsoft Rewards Reddit community to reveal that not only had they been lucky enough to win the Lifetime Membership, but they also felt forced to decline it due to tax reasons.


12 comments block

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[ - ] SithEmpire 4 points 2 yearsApr 16, 2023 09:57:31 ago (+4/-0)

In the absence of not living in an occupied communist shit-hole, prize-givers should respond to the 24% tax by adding cash for the winner to cover it. Take the $7300 valuation, divide by 0.76 to get $9605, then include that difference to cover both the prize and the tax cash itself.

[ - ] SirNigsalot 3 points 2 yearsApr 16, 2023 11:06:17 ago (+3/-0)

Wouldn't that just incur a higher tax?

[ - ] Portmanure 2 points 2 yearsApr 16, 2023 11:21:28 ago (+2/-0)

No, you’ll pay the same tax rate, the larger amount will require a larger tax payment. As long as the total amount minus tax is equal to the $7300 valuation. You still have to take care to make sure the added income doesn’t push you into a higher tax bracket. Even then it’s not that dire you’ll just have to pay a higher tax rate on the amount that puts you into the higher tax bracket.

[ - ] SithEmpire 0 points 2 yearsApr 17, 2023 14:22:22 ago (+0/-0)

Adding 0.24 of $7300 would incur that. As I said, the trick is to divide it by 0.76, that way you get a number which also covers the extra cash itself.

[ - ] deleted 0 points 2 yearsApr 16, 2023 17:31:49 ago (+0/-0)

deleted

[ - ] dosvydanya_freedomz [op] 0 points 2 yearsApr 16, 2023 18:26:51 ago (+0/-0)

[ - ] WanderingToast 0 points 2 yearsApr 16, 2023 12:53:48 ago (+0/-0)

What an idiot.

The lowest price Xbox game pass is available for is free (for a limited time set by ms)

So just determine that it's free and don't tell the tax man shit.

Why are people so stupid?

[ - ] AngryWhiteKeyboardWarrior 0 points 2 yearsApr 16, 2023 13:35:07 ago (+0/-0)

As long as he doesn't get audited, that would probably work.

[ - ] Sector7 1 point 2 yearsApr 16, 2023 17:13:07 ago (+1/-0)

I'm going to be declining that audit. What are they going to do, start sending me stacks of dunning letters again? They gave up close to 20 years ago. I'd laugh if they started again.

But I'd decline the prize too, because microsoft.

[ - ] bonghits4jeebus 0 points 2 yearsApr 16, 2023 23:58:48 ago (+0/-0)

Does MS have to report this to the tax man? I'm guessing they may declare the value. You could argue against it.

[ - ] WanderingToast 0 points 2 yearsApr 16, 2023 14:47:58 ago (+0/-0)

If it's a Microsoft competition / prize...all they are going to do is add it to whatever Hotmail account you give em.

So just make a new email / gamertag. Use fake deets, and give em that.

[ - ] Clubberlang 0 points 2 yearsApr 16, 2023 12:06:17 ago (+0/-0)

I guess they figured a nog would win the prize.