This makes the “prize” not really a benefit to me until almost 10 years have passed, which is how many years of Game Pass I could buy right now if I spent around $1752.', said the player.Describing Xbox Game Pass as “the Netflix of video games” is already a tired comparison, but frankly, it’s also a perfect summation of how the service works. The for Life part of the prize is limited to a maximum of 40 years, hence the $7300 cash value that they have to report to the IRS. Per US tax law, that will likely increase my 2023 federal tax bill by $1752 (24% of the prize value).Īlso, I would have added state income tax, but let’s not bother figuring that in. 'I read that I would have $7300 of added taxable income to my 2023 taxes as a result if I claim the prize. The bad news is that the reward is not transferable or exchangeable for its cash value, so he had to turn it down and was left with nothing. The Xbox fan put everything on the scales and came to the conclusion that, because of this, it was not in his best interest to accept the award. tax law, this detail would significantly increase the taxes the gamer would have to pay this year. In the terms of the contest, it is explained that the value of the prize amounts to approximately $7300. To the surprise of many, he revealed that it was for tax reasons, as accepting the price implied paying certain taxes that he was not willing to cover. The winner in question explained on reddit why he refused the Xbox Game Pass lifetime subscription. Gamer turned down 40 years of Xbox Game Pass for fiscal reasons For this reason, he explained his reasons for not accepting the incredible prize that many would like to have. The Xbox fan knows that his decision baffled the entire community, as no one in their right mind would turn down 40 free years of subscription. Well, one lucky gamer won the fabulous prize however, he surprisingly turned it down. One of the most coveted rewards from Microsoft Rewards is a lifetime subscription to Xbox Game Pass, which is occasionally raffled off to users of the program in the United States.

Xbox often runs contests to reward its gamers with fabulous prizes.

How much is xbox game pass with tax