If you entered the free Microsoft Xbox Game Pass lifetime membership, would you claim your prize? On Reddit, an American netizen Elvite won the grand prize in the Microsoft Rewards sweepstakes a few weeks ago and was awarded an Xbox Game Pass Ultimate lifetime membership (40-year membership). At first glance it seemed very attractive, but Elvite actually chose to forego this prize.
It turns out that because Elvite is in the United States, according to the local tax laws, even the prizes obtained from the lottery are taxable. Excluding state taxes, Elvite already has to pay 24% of the prize value in taxes. If Elvite redeems a 40-year Xbox Game Pass worth $7,300 (approximately HK$57,303.87), it will need to pay an additional $1,752 (approx. HK$13,752.94) tax.
According to Elvite, this “lifetime” Xbox Game Pass Ultimate is not transferable to another person and cannot be redeemed for cash. After receiving the prize, he needs to pay $1,752, which is enough to buy Xbox Game Pass for about 10 years, so that the prize will not be “returned” after 10 years.
Elvite said the value of the entire prize is spread over 40 years, and if he dies within 10 years, he will lose money. Elvite said that if the prize was 10 years of Game Pass usage rights, the tax amount would be lower and he would have a greater chance of accepting the gift.
Elvite’s choice to give up the award seems very reasonable. After all, it will take 10 years to pay back, and the entire prize will take 40 years to be consumed. Don’t say whether Elvite is still alive, maybe Xbox has already stopped the Game Pass service by then up. If it’s you, will you accept the prize?
Source: Reddit
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