May 31, 2023

Xbox Game Pass Ultimate for Life won, but was rejected

It’s a completely absurd event, but a player won Xbox Game Pass Ultimate for life, but had to decline because of the tax burden associated with the prize they won in the Microsoft program.

Elvite shared on Reddit, thanks to PureXboxwho won Microsoft Rewards Sweepstakes for lifetime access to Xbox Game Pass Ultimate Access, but upon being given the necessary paperwork to fill out before claiming the prize, decided not to sign up.

After reading through all the information in the docs, something Microsoft was eager to make plain, I discovered that $7,300 would be added to its 2023 taxable taxes when the insurance premium was refunded, along with the state tax it didn’t even bother to calculate.

According to him, the award is limited to a maximum of 40 years and this stems from the value that Microsoft has to communicate for the financing. Since it’s not transferrable or redeemable for cash, Elvite says you’d be better off spending $1,752 to get Xbox Game Pass Ultimate for 10 years, which is the time it takes for the prize to financially pay off.

Elvite says that if the premium was for 10 years that would be an acceptable tax burden, but this way, it doesn’t make up for it and she’d rather say no to the premium.