Every time you bought a food item you were given a game piece (or - even like chumba - you can request a game piece without the need to purchase anything - I think this is a law in running a sweepstakes). However, I see nothing in the tax rules that allows you deduct the gold coin purchases from these deposits to minimize the taxes owed.Īn analogy is the Monopoly game that McDonalds used to run. From IRS point of view, it seems deposits received from Chumba will need to be reported like any other taxable income (and you will need to pay tax at whatever rate applies to you).

Any SC you convert into cash will be deposited into your bank account. You wager the SC to win more SC (or lose them). You purchase gold coins and with that you are given sweepstakes coins (SC). Chumba is legal in most of the US because it is not considered gambling but instead is a sweepstakes game. Chumba provides fun games but I am worried about tax liability.