When you withdraw Surprise withdrawable Coins for real prizes on ZumbaCards, it’s important to understand your tax responsibilities.
Do I need to pay taxes on my winnings?
Yes. Players are responsible for reporting and paying any taxes due on withdrawn prizes. ZumbaCards does not withhold taxes automatically from your payout.
When will ZumbaCards collect my tax information?
If your total withdrawals in a calendar year reach certain thresholds (typically $600 USD or more), ZumbaCards may ask for your Social Security Number (SSN) during verification. In such cases, we may issue a 1099-MISC form for you to file with your annual tax return.
What forms might I receive?
Form 1099-MISC: Issued by ZumbaCards if your annual prize withdrawals meet IRS reporting requirements.
If your withdrawals are below the reporting threshold, you may not receive a form, but you are still responsible for declaring your winnings as income.
How do I prepare for tax season?
Keep track of your withdrawals in your ZumbaCards account history.
Save any confirmation emails or receipts related to your prize claims.
Consult a tax professional if you’re unsure how to report such winnings.
Important reminders
ZumbaCards cannot provide tax advice. It is your responsibility to understand how such prizes affect your taxes.
Verification, including providing your SSN (last four digits at signup and full SSN if needed for tax forms), may be required before large withdrawals are processed.
Always ensure your personal information is accurate and up to date to avoid delays in prize fulfillment and reporting.