“The only two certainties in life are death and taxes” – Mark Twain.
Swagbucks members are responsible for any and all tax liability arising from or associated with your use of this Website, including liability generated from SB redemptions.
Upon reaching $600 or more in SB redemptions in one calendar year, you will be prompted to fill out the required tax information about yourself. You will not be allowed to continue redemptions (except for PayPal and Gambit) for the rest of the calendar year until you successfully complete the tax form.
Q: What types of SB redemptions count towards the $600 IRS threshold?
A: All Gift Cards and Rewards, except: PayPal & Gambit
Q: Which earning activities count towards being taxable?
A: The following activities ARE classified as taxable:
- Answer (Surveys, Tasks & Any Receipt)
- Games (except GSN)
- nCrave /Watch
- SB Live
A: The following activities ARE NOT classified as taxable:
- Gambit Earnings
- Discover / Offers
- In-Store Deals
- Buy SB
Q: What will Swagbucks do with my tax information?
A: Swagbucks will file a 1099 to the IRS on your behalf. All your information will be secure and not stored with Swagbucks. We’ve partnered with HelloSign, a Dropbox company for electronic signature collection.
Q: Can you give me some examples of when the $600 redemption threshold will and won’t apply?
Ex: Johnny redeemed $2,000 in a calendar year for Amazon and Visa gift cards and his past earnings largely were from shopping and playing Gambit. Since those two activities are not tax deductible, he can redeem his SB for rewards without triggering the tax form.
Ex: Sandra has redeemed $600 in a calendar year for Amazon and Best Buy Gift Cards. She earns the majority of her earnings from taking surveys. She will be required to provide tax information because surveys are a taxable activity
Note: If she redeems for PayPal and/or Gambit instead, she will not be required to submit tax info as those rewards are exempt from the threshold limit.
Ex: Fernando has earned $5,000 from surveys and playing SB Live, but has only redeemed for $400 in Gift Cards this year. He will not be required to submit information yet because even though he has earned a lot, he has not redeemed for more than $600.
Taxes can be complicated and for more detailed questions, we recommend speaking with a tax professional.
Any questions, contact us here.