Taxes on sweepstakes winnings can significantly impact the total amount a winner receives. In the United States, the Internal Revenue Service (IRS) considers these winnings as taxable income, meaning winners must report them on their tax returns. Taxes on sweepstakes winnings can vary based on the prize amount and the winner's overall income, potentially placing them in a higher tax bracket. It's essential for winners to consult with a tax professional to understand their obligations and ensure compliance with tax laws.