The Xbox Game Pass offers players the ability to play numerous games through a subscription. In some cases, the subscription service even includes new games right at their release. Using the Game Pass for 40 years for free actually sounds pretty good, but a gamer from the USA saw it differently.
What kind of prize is that? The Reddit user “Elvite” reports in a post on the social network that he won a lifetime membership for the Xbox Game Pass in a Microsoft Rewards sweepstakes and declined the prize (via reddit).
The Microsoft Rewards are a way to collect points by using Microsoft services like Edge or Bing and completing quizzes. The Microsoft Rewards points can be exchanged for in-game currencies.
However, Elvite’s lifetime prize is not really lifetime but limited to 40 years. Elvite is American and says that Microsoft must report the value of the prize to the US tax authorities. To do this, “lifetime” is supposed to be specified with a year designation, in this case 40 years.
“I wish the prize wasn’t lifetime”
Why did the player decline the prize? According to his own statement, Elvite declined the prize because in the USA the value of a sweepstakes prize must also be taxed.
In his post on Reddit, he says that by accepting the prize he would have an additional taxable amount of $7,300 for the year 2023. The sum represents the value of the prize that a 40-year “Xbox Game Pass” subscription would cost.
Of course, I declined the offer. […] If I live less than 10 years from now, I lose. I wish the prize wasn’t lifetime but something that would make the tax bill easier to digest, like 10 years of Game Pass Ultimate.
Elvite via Reddit
According to Elvite, there are $1,752 in taxes on the value of $7,300 that he would have to pay in 2023. Additionally, he cannot transfer his prize to another person or take cash instead of the subscription.
Moreover, Elvite calculated that the Game Pass subscription would only be worth it for him after 10 years since he could buy 10 years of Xbox Game Pass with the money he would have to pay in taxes upon accepting his prize.
With Microsoft Rewards, you can also secure a month of Xbox Game Pass outside of a sweepstakes and won’t have to pay taxes on it:
Xbox Game Pass “free”? Here’s how to extend your membership for free every month
