New Prize Tax Rules Raise the 1099 Threshold for Sweepstakes and Contests

Among the many changes included in the One Big Beautiful Bill Act (OBBBA) is one relevant to brands and agencies running sweepstakes, contests, and other consumer promotions. For prizes (such as cash, gift cards, trips, merchandise, and event tickets) awarded after December 31, 2025, OBBBA raises the federal Form 1099-MISC reporting threshold from $600 to…