Sweepstakes winnings taxes can significantly impact the total amount you receive from your prize. When you win a sweepstakes, the IRS considers it taxable income, meaning you must report your winnings on your tax return. Depending on the prize's value, you may owe a substantial amount in sweepstakes winnings taxes, which can range from federal to state taxes. It's essential to keep accurate records and consult a tax professional to ensure compliance and understand your obligations regarding sweepstakes winnings taxes.